Zachary Plumbing Company has the following information for the current year:
$\begin{array}{lr}
\text {Selling price per unit }&\$10\
\text {Variable costs per unit}&\$7\
\text {Fixed costs }&\$1,500\
\end{array}$
Prepare a profit-volume graph identifying the following items:
a.Profit line
b.Intersection of profit line and vertical axis
c.Break-even point
d.Profit area
e.Loss area

Question

Zachary Plumbing Company has the following information for the current year:
  $\begin{array}{lr}
\text {Selling price per unit  }&\$10\
\text {Variable costs per unit}&\$7\
\text {Fixed costs }&\$1,500\
\end{array}$
 Prepare a profit-volume graph identifying the following items: 
a.Profit line
b.Intersection of profit line and vertical axis
c.Break-even point
d.Profit area
e.Loss area

Quizplus · Accepted Answer

The Answer of Zachary Plumbing Company has the following information for the current year:
  $\begin{array}{lr}
\text {Selling price per unit  }&\$10\
\text {Variable costs per unit}&\$7\
\text {Fixed costs }&\$1,500\
\end{array}$
 Prepare a profit-volume graph identifying the following items: 
a.Profit line
b.Intersection of profit line and vertical axis
c.Break-even point
d.Profit area
e.Loss area