In: Accounting
For the coming year, Paladin Inc. anticipates fixed costs of
$120,000, a unit variable cost of $60, and a unit selling price of
$90. The maximum sales within the relevant range are
$900,000.
(a) Construct a cost-volume-profit chart.
(b) Estimate the break-even sales (dollars) by using the
cost-volume-profit chart constructed in part (a).
(c) What is the main advantage of presenting the cost-volume-profit
analysis in graphic form rather than equation form?