construct a cost-volume-profit chart assuming maximum sales in the relevant range of 40,000 units. (Use the available graph template below.) Label the following parts of the graph: Sales Revenue, Fixed Costs, Variable Costs,

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 17E
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need help on question 3 and graph thanks 

During the upcoming year De Anza Co. expects the following data:
Expected unit selling price is:
Expected unit variable cost is:
Expected total fixed costs are:
Required
1. Calculate breakeven point in both units and dollars. (Show work in blank space below.)
$125
$70
$1,512,500
Round units to the nearest unit and round dollars to the nearest dollar.
2. Compute sales units required to realize income from operations of $630,000.
3. Construct a cost-volume-profit chart assuming maximum sales in the relevant
range of 40,000 units. (Use the available graph template below.)
Label the following parts of the graph: Sales Revenue, Fixed Costs, Variable Costs,
Total Costs, Profit Area, Loss Area, and Break Even Point.
fill in appropriate
cost amounts on y
axis
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
UNITS
Transcribed Image Text:During the upcoming year De Anza Co. expects the following data: Expected unit selling price is: Expected unit variable cost is: Expected total fixed costs are: Required 1. Calculate breakeven point in both units and dollars. (Show work in blank space below.) $125 $70 $1,512,500 Round units to the nearest unit and round dollars to the nearest dollar. 2. Compute sales units required to realize income from operations of $630,000. 3. Construct a cost-volume-profit chart assuming maximum sales in the relevant range of 40,000 units. (Use the available graph template below.) Label the following parts of the graph: Sales Revenue, Fixed Costs, Variable Costs, Total Costs, Profit Area, Loss Area, and Break Even Point. fill in appropriate cost amounts on y axis 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 UNITS
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