## Prepare a short explanation for company management about each of the graphs.

sales dollars c. What would Diamond Jim’s break-even point be if sales commissions increased to \$54? d. What would Diamond Jim’s break-even point be if selling expenses decreased by \$6,000? Excel Chapter 9 Break-Even Point and Cost-Volume-Profi t Analysis 409 13. LO.2 (Formula; graph; income statement) Pittsburg Tar Co. had the following income statement for 2010: Sales (30,000 gallons × \$8) \$240,000 Variable cost Production (40,000 gallons × \$3) \$120,000 Selling (30,000 gallons × \$0.50) 15,000 (135,000) Contribution margin \$105,000 Fixed cost Production \$ 46,000 Selling and administrative 6,200 (52,200) Income before tax \$ 52,800 Income tax (40%) (21,120) Net income \$ 31,680 a. Compute the break-even point using the equation approach. b. Prepare a CVP graph to refl ect the relationships among cost, revenue, profi t, and volume. c. Prepare a profi t-volume graph. d. Prepare a short explanation for company management about each of the graphs. e. Prepare an income

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Mr Hunter leaves his Certificate of Title in safe custody with his solicitor, Mr Matthews, along with an executed Transfer. The name has been left blank on the transfer. Mr….

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What can you expect from an industry in perfect competition in the long run? What will the price be? What quantity will be produced? What will be the relation between….

### What is the equilibrium price and quantity?

Entry and exit of firms occur in the long run, but not in the short run. Why? What is meant by the long run and the short run? Would you….