For the coming year, Paladin Inc. anticipates fixed costs of $120,000, a unit variable cost of $60,

Question:

For the coming year, Paladin Inc. anticipates fixed costs of $120,000, a unit variable cost of $60, and a unit selling price of $90. The maximum sales within the relevant range are $900,000.
(a) Construct a cost-volume-profit chart.
(b) Estimate the break-even sales (dollars) by using the cost-volume-profit chart constructed in part (a).
(c) What is the main advantage of presenting the cost-volume-profit analysis in graphic form rather than equation form?