Cost- volume profit (CVP) chart: The CVP chart shows the relation between cost, units and profit of the product. The elements of the CVP charts are explained as follows: 1. Sales Line: Sales line shows the total sales at a given level of output. It changes with the change in level of units. 2. Fixed Cost line: Fixed cost line represents the amount to total fixed cost at a given level of production. It remains same irrespective of the level of sales. 3. Total Cost line: Total cost line represents the amount of total cost ate a given level of output. The Total costs changes with the change in level of output. 4. Breakeven point: In CVP graph, Breakeven point is the point at which Sales line meets Total cost line, or say it is the level of output at which sales is equal to the total cost and there is no profit or loss. Breakeven point in units is calculated with the help of following formula: B r e a k e v e n p o i n t ( U n i t s ) = T o t a l F i x e d C o s t ( S a l e s p r i c e p e r u n i t – V a r i a b l e c o s t p e r u n i t ) To determine: The effect of each change on the elements of CVP graph

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Answer 1

Question

Chapter 21, Problem E21.40E

To determine

Concept Introduction:

Cost- volume profit (CVP) chart: The CVP chart shows the relation between cost, units and profit of the product. The elements of the CVP charts are explained as follows:

1. Sales Line: Sales line shows the total sales at a given level of output. It changes with the change in level of units.

2. Fixed Cost line: Fixed cost line represents the amount to total fixed cost at a given level of production. It remains same irrespective of the level of sales.

3. Total Cost line: Total cost line represents the amount of total cost ate a given level of output. The Total costs changes with the change in level of output.

4. Breakeven point: In CVP graph, Breakeven point is the point at which Sales line meets Total cost line, or say it is the level of output at which sales is equal to the total cost and there is no profit or loss. Breakeven point in units is calculated with the help of following formula:

$B r e a k e v e n p o i n t (U n i t s) = \frac{T o t a l F i x e d C o s t}{(S a l e s p r i c e p e r u n i t - V a r i a b l e c o s t p e r u n i t)}$

To determine: The effect of each change on the elements of CVP graph

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Answer 2

Question

Chapter 21, Problem E21.40E

To determine

Concept Introduction:

Cost- volume profit (CVP) chart: The CVP chart shows the relation between cost, units and profit of the product. The elements of the CVP charts are explained as follows:

1. Sales Line: Sales line shows the total sales at a given level of output. It changes with the change in level of units.

2. Fixed Cost line: Fixed cost line represents the amount to total fixed cost at a given level of production. It remains same irrespective of the level of sales.

3. Total Cost line: Total cost line represents the amount of total cost ate a given level of output. The Total costs changes with the change in level of output.

4. Breakeven point: In CVP graph, Breakeven point is the point at which Sales line meets Total cost line, or say it is the level of output at which sales is equal to the total cost and there is no profit or loss. Breakeven point in units is calculated with the help of following formula:

$B r e a k e v e n p o i n t (U n i t s) = \frac{T o t a l F i x e d C o s t}{(S a l e s p r i c e p e r u n i t - V a r i a b l e c o s t p e r u n i t)}$

To determine: The effect of each change on the elements of CVP graph

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

Question

Chapter 21, Problem E21.40E

To determine

Concept Introduction:

Cost- volume profit (CVP) chart: The CVP chart shows the relation between cost, units and profit of the product. The elements of the CVP charts are explained as follows:

1. Sales Line: Sales line shows the total sales at a given level of output. It changes with the change in level of units.

2. Fixed Cost line: Fixed cost line represents the amount to total fixed cost at a given level of production. It remains same irrespective of the level of sales.

3. Total Cost line: Total cost line represents the amount of total cost ate a given level of output. The Total costs changes with the change in level of output.

4. Breakeven point: In CVP graph, Breakeven point is the point at which Sales line meets Total cost line, or say it is the level of output at which sales is equal to the total cost and there is no profit or loss. Breakeven point in units is calculated with the help of following formula:

$B r e a k e v e n p o i n t (U n i t s) = \frac{T o t a l F i x e d C o s t}{(S a l e s p r i c e p e r u n i t - V a r i a b l e c o s t p e r u n i t)}$

To determine: The effect of each change on the elements of CVP graph

Expert Solution & Answer

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See solution

Answer 4

Question

Chapter 21, Problem E21.40E

To determine

Concept Introduction:

Cost- volume profit (CVP) chart: The CVP chart shows the relation between cost, units and profit of the product. The elements of the CVP charts are explained as follows:

1. Sales Line: Sales line shows the total sales at a given level of output. It changes with the change in level of units.

2. Fixed Cost line: Fixed cost line represents the amount to total fixed cost at a given level of production. It remains same irrespective of the level of sales.

3. Total Cost line: Total cost line represents the amount of total cost ate a given level of output. The Total costs changes with the change in level of output.

4. Breakeven point: In CVP graph, Breakeven point is the point at which Sales line meets Total cost line, or say it is the level of output at which sales is equal to the total cost and there is no profit or loss. Breakeven point in units is calculated with the help of following formula:

$B r e a k e v e n p o i n t (U n i t s) = \frac{T o t a l F i x e d C o s t}{(S a l e s p r i c e p e r u n i t - V a r i a b l e c o s t p e r u n i t)}$

To determine: The effect of each change on the elements of CVP graph

Expert Solution & Answer

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Answer 5

Chapter 21, Problem E21.40E

To determine

Concept Introduction:

Cost- volume profit (CVP) chart: The CVP chart shows the relation between cost, units and profit of the product. The elements of the CVP charts are explained as follows:

1. Sales Line: Sales line shows the total sales at a given level of output. It changes with the change in level of units.

2. Fixed Cost line: Fixed cost line represents the amount to total fixed cost at a given level of production. It remains same irrespective of the level of sales.

3. Total Cost line: Total cost line represents the amount of total cost ate a given level of output. The Total costs changes with the change in level of output.

4. Breakeven point: In CVP graph, Breakeven point is the point at which Sales line meets Total cost line, or say it is the level of output at which sales is equal to the total cost and there is no profit or loss. Breakeven point in units is calculated with the help of following formula:

$B r e a k e v e n p o i n t (U n i t s) = \frac{T o t a l F i x e d C o s t}{(S a l e s p r i c e p e r u n i t - V a r i a b l e c o s t p e r u n i t)}$

To determine: The effect of each change on the elements of CVP graph

Answer 6

Chapter 21, Problem E21.40E

To determine

Concept Introduction:

Cost- volume profit (CVP) chart: The CVP chart shows the relation between cost, units and profit of the product. The elements of the CVP charts are explained as follows:

1. Sales Line: Sales line shows the total sales at a given level of output. It changes with the change in level of units.

2. Fixed Cost line: Fixed cost line represents the amount to total fixed cost at a given level of production. It remains same irrespective of the level of sales.

3. Total Cost line: Total cost line represents the amount of total cost ate a given level of output. The Total costs changes with the change in level of output.

4. Breakeven point: In CVP graph, Breakeven point is the point at which Sales line meets Total cost line, or say it is the level of output at which sales is equal to the total cost and there is no profit or loss. Breakeven point in units is calculated with the help of following formula:

$B r e a k e v e n p o i n t (U n i t s) = \frac{T o t a l F i x e d C o s t}{(S a l e s p r i c e p e r u n i t - V a r i a b l e c o s t p e r u n i t)}$

To determine: The effect of each change on the elements of CVP graph

Answer 7

Chapter 21, Problem E21.40E

To determine

Concept Introduction:

Cost- volume profit (CVP) chart: The CVP chart shows the relation between cost, units and profit of the product. The elements of the CVP charts are explained as follows:

1. Sales Line: Sales line shows the total sales at a given level of output. It changes with the change in level of units.

2. Fixed Cost line: Fixed cost line represents the amount to total fixed cost at a given level of production. It remains same irrespective of the level of sales.

3. Total Cost line: Total cost line represents the amount of total cost ate a given level of output. The Total costs changes with the change in level of output.

4. Breakeven point: In CVP graph, Breakeven point is the point at which Sales line meets Total cost line, or say it is the level of output at which sales is equal to the total cost and there is no profit or loss. Breakeven point in units is calculated with the help of following formula:

$B r e a k e v e n p o i n t (U n i t s) = \frac{T o t a l F i x e d C o s t}{(S a l e s p r i c e p e r u n i t - V a r i a b l e c o s t p e r u n i t)}$

To determine: The effect of each change on the elements of CVP graph

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 21 - For Frank’s Funky Sounds, straight-line...Ch. 21 - Prob. 2QC Ch. 21 - Prob. 3QC Ch. 21 - Prob. 4QC Ch. 21 - Prob. 5QC Ch. 21 - On a CVP graph, the total cost line intersects the...Ch. 21 - If a company increases its sales price per unit...Ch. 21 - Prob. 8QC Ch. 21 - Prob. 9QC Ch. 21 - Prob. 10QC

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Chapter 21 Solutions