In a CVP graph, the intersection of the total costs line and the total sales revenue line is the break-even point in units.

Breadline Corporation has the following information for the current year:   Selling price per unit $     10 Variable costs per unit $       6 Fixed costs $1,000 Required: Prepare a cost-volume-profit graph identifying the following items:   a. Total costs line b. Total fixed costs line c. Total variable costs line d. Total revenues line e. Break-even point in sales dollars f. Break-even point in units g. Profit area h. Loss area

Information about the Harmonious Company’s two products includes: ​   Product X Product Y Unit selling price $     11.25 $11.25 Unit variable costs:       Manufacturing $       5.25 $  6.75   Selling    .75    .75 Total $       6.00 $  7.50       Monthly fixed costs are as follows:       Manufacturing $   82,500     Selling and administrative    45,000   Total $ 127,500   ​ If the sales mix in units is 50 percent Product X and 50 percent Product Y, the monthly break-even total sales dollars is

Amber Company had the following information: ​ Activity Driver Unit Variable Cost Level of Activity Driver Units sold $         30    — Setups  1,500    50 Engineering hours     50 1,200       Other data:         Total fixed costs (traditional) $500,000       Total fixed costs (Activity-based costing) 200,000       Unit selling price               50   ​ How many units need to be sold to produce a before-tax profit of $100,000 using activity-based costing (ABC)? 

Assume the following information: Variable cost ratio 80% Total fixed costs $60,000 ​ What volume of sales dollars is needed to break even?

Copies Plus Print operates a copy business at two different locations. Copies Plus Print has one support department that is responsible for cleaning, service, and maintenance of its copying equipment. The costs of the support department are allocated to each copy center on the basis of total copies made. During the first month, the costs of the support department were expected to be $200,000. Of this amount, $60,000 is considered a fixed cost. During the month, the support department incurred actual variable costs of $128,000 and actual fixed costs of $72,000. Normal and actual activity (copies made) are as follows:   ​ Copy Center 1 Copy Center 2 Normal activity (copies) 600,000 400,000 Actual activity (copies) 500,000 440,000 ​ For purposes of performance evaluation, fixed costs allocated to Copy Center 2 are:

Colorado Corporation has the following sales forecast for the next quarter: ​ July, 4,000 units; August, 4,800 units; September, 5,600 units ​ Sales totaled 3,200 units in June. The June ending finished goods inventory was 800 units. End-of-month finished goods inventory levels are planned to be equal to 30 percent of the next month’s planned sales. ​ The planned ending inventory of finished goods for August is

Fantasmas Incorporated had the following information: ​ Activity Driver Unit Variable Cost Level of Activity Driver Units sold $         20    — Setups  1,200    60 Engineering hours     52 1,500       Other data:         Total fixed costs (traditional) $600,000       Total fixed costs (ABC) $360,000       Unit selling price      $         60   ​ Suppose Fantasmas could reduce setup costs by $300 per setup and could reduce the number of engineering hours needed to 1,400 hours. How many units must be sold to break even in this case?

Efforts to simplify activity-based costing systems (ABC) involve either before-the-fact simplification or after-the-fact simplification.

A company incurred $120,000 of common fixed costs and $180,000 of common variable costs. These costs are to be allocated to Departments XX and YY. Data on capacity provided and capacity used are as follows:     Capacity Provided Capacity Used Department in Hours in Hours       XX 500 400       YY 300 400 ​ Assume that both fixed and variable costs are allocated on the basis of capacity used. The fixed and variable costs allocated to Department XX are   Fixed Variable