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Use the Graphical Approach to CVP Analysis to Solve the Following

Question 67

Short Answer

Use the graphical approach to CVP analysis to solve the following problem.
Canada Bagel Company manufactures packages of bagels that it sells for $2.50. The variable costs per package are $1.00.
a) To just break even, how many packages of bagels must be sold per month if the fixed costs are $60,000 per month?
b) What must unit sales be in order to have a profit of $7,500 per month?
Use the graphical approach to CVP analysis to solve the following problem. Canada Bagel Company manufactures packages of bagels that it sells for $2.50. The variable costs per package are $1.00. a) To just break even, how many packages of bagels must be sold per month if the fixed costs are $60,000 per month? b) What must unit sales be in order to have a profit of $7,500 per month?

Correct Answer:

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a) 40,000 ...

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