with the information given draw a graph, On the x-axis, you would have the number of units sold (from 0 to 800,000 in increments of 100,000) and on the y-axis, you would have the dollar amount (from 0 to $3,200,000 in increments of S 400,000). Draw a line from the origin with a slope equal to the variable cost per unit ($2.5) to represent total variable costs. Draw a horizontal line at $600,000 to represent total fixed costs. The sum of these two lines gives the total cost line. Draw another line from the origin with slope equal to the selling price per unit ($4) to represent total sales. The point where the total sales line intersects the total cost line

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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with the information given draw a graph, On the x-axis, you would have the number of units sold (from 0 to 800,000 in increments of 100, 000) and on the y-axis, you would have the dollar amount (from 0 to $3,200,000 in increments of $
400,000). Draw a line from the origin with a slope equal to the variable cost per unit ($2.5) to represent total variable costs. Draw a horizontal line at $600,000 to represent total fixed costs. The sum of these two lines gives the total cost line.
Draw another line from the origin with a slope equal to the selling price per unit ($4) to represent total sales. The point where the total sales line intersects the total cost line
Transcribed Image Text:with the information given draw a graph, On the x-axis, you would have the number of units sold (from 0 to 800,000 in increments of 100, 000) and on the y-axis, you would have the dollar amount (from 0 to $3,200,000 in increments of $ 400,000). Draw a line from the origin with a slope equal to the variable cost per unit ($2.5) to represent total variable costs. Draw a horizontal line at $600,000 to represent total fixed costs. The sum of these two lines gives the total cost line. Draw another line from the origin with a slope equal to the selling price per unit ($4) to represent total sales. The point where the total sales line intersects the total cost line
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