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10/30/17, 12)56 PMHW Assignment - Chapter 3

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QUESTION 2 Not yet answered Points out of 16.00

Profit-Volume Graph: Identification and Sensitivity Analysis A typical profit-volume graph follows.

Required a. Identify each of the following:

1. Area BDC

2. Area DEF

3. Point D

4. Line AC

5. Line BC

6. Line EF

b. Indicate the effect of each of the following on line CF and the break-even point:

Line CF Break-Even Point

1. An increase in the unit selling price

2. An increase in the variable costs per unit

3. A decrease in fixed costs

4. An increase in fixed costs and a decrease in the unit selling price

5. A decrease in fixed costs and an increase in the variable costs per unit