Analyzing Break-Even Point, Preparing CVP Graph
Peggy’s Ribbon World makes award rosettes. Following is information about the company:
Variable cost per rosette | $ 1.10 |
Sales price per rosette | 2.50 |
Total fixed costs per month | 889.00 |
Required:
1.Determine how many rosettes Peggy’s must sell to break even.
2.Calculate the break-even point in sales dollars.
3.Prepare a CVP graph for Peggy’s assuming the relevant range is zero to 1,500 rosettes.
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