The answer is
Loss Area
Since cost line is above the revenue line
Line B is cost line as fixed costs exists even when revenue is zero
Line A is revenue line
When revenue is lower than cost, it results in loss
Consider the following cost-volume-profit graph: $150,000 120,000 90,000 60,000 30,000 / O The area designated by...
Consider the following cost-volume profit graph: (A) $150,000 120,000 90,000 (B) 60,000 30,000 (9) 0 The line designated by the letter (B) represents which of the following? Multiple Choice Total cost Total revenue Break-even
Consider the following cost volume profit graph 5150,000 120,000 90,000 (B) 60,000 30,000 (C) 0 The line designated by the letter (A) represents which of the following? Multiple Choice Total revenue Total cost Total fixed cost None of these is correct
Break-Even Sales and Cost-Volume-Profit Graph For the coming year, Bernardino Company anticipates a unit selling price of $140, a unit variable cost of $70, and fixed costs of $735,000. Instructions: 1. Compute the anticipated break-even sales in units. _________________ units 2. Compute the sales (units) required to realize operating income of $322,000. _________________ units 3. Construct a cost-volume-profit graph on paper, assuming maximum sales of 21,000 units within the relevant range. From your chart, indicate whether each of the following...
Last month McAlister Company had a $60,000 loss on sales of $300,000. Fixed costs are $120,000 a month. Answer the following questions: a. What was the contribution margin percentage? b. What monthly sales volume (in dollars) would be needed to break-even? c. What sales volume (in dollars) would be needed to earn $150,000?
Break-Even Sales and Cost-Volume-Profit Graph For the coming year, Bernardino Company anticipates a unit selling price of $144, a unit variable cost of $72, and fixed costs of $640,800. Instructions: 1. Compute the anticipated break-even sales in units. units 2. Compute the sales (units) required to realize operating income of $244,800. units 3. Construct a cost-volume-profit graph on paper, assuming maximum sales of 17,800 units within the relevant range. From your chart, indicate whether each of the following sales levels...
Which of the following are true in a cost-volume-profit graph: An increase in the unit selling price would shift the break even sales point to the left An increase in unit variable costs would decrease the slope of the total costs line An increase in the unit selling price would shift the break-even sales point to the right All of the answers are correct QUESTION 4 Watson Company sells its product for $10 a unit. Next year, fixed expenses are...
Part II (40 Points) Practice Situation A: Cost-Volume-Profit Analysis Assume the following for Albany Manufacturing Corporation: Fixed costs . Unit selling price Unit variable cost . . . . . . $90,000 $ 25 $ 15 art II (40 Points) Practice ituation A: Cost-Volume-Profit Analysis assume the following for Albany Manufacturing Corporation: . . . Fixed costs Unit selling price Unit variable cost $90,000 $ 25 $ 15 (1) What is the break-even point in dollars? (2) What is the...
Chapter 4 Cost-Volume-Profit Analysis: A Managerial Planning Tool 4-4 In the cost-volume-profit grap a. the break-even point is found where the total revenue curve crosses the x-axis. b. the area of profit is to the lett of the break-even point. c. the area of loss cannot be determined. d. both the total revenue curve and the total cost curve appear. e. neither the total revenue curve nor the total cost curve appear. n important assumption of cost-volume-profit analysis is that...
Cost-Volume-Profit Chart For the coming year, Cabinet Inc. anticipates fixed costs of $62,000, a unit variable cost of $75, and a unit selling price of $125. The maximum sales within the relevant range are $500,000. a. Construct a cost-volume-profit chart on a sheet of paper. Indicate whether each of the following levels of sales is in the operating profit area, operating loss area, or at the break-even point. 1,000 units 2,000 units $250,000 4,000 units $450,000 b. Estimate the break-even...
Cost Patterns The following graph depicts cost-volume relationships for Tallmadge Company: Dollars 0 Volume Choose a labeled point or line on the graph that best represents the behavior of each of the following items as operating volume is increased. Answers may be the same for more than one item. Answer each item independently (Select the appropriate point or line by using the drop-down answer box found at the end of each item.) a. Total sales revenue. b. Total costs C....