Larry Kyler is considering starting a Web-based educational business, e-Prep MBA. He plans to offer a short-course review of accounting for students entering MBA programs. The materials would be available on a password-protected Web site; students would complete the course through self-study. Kyler would have to grade the course assignments, but most of the work would be in developing the course materials, setting up the site, and marketing. Unfortunately, Kyler's hard drive crashed before he finished his financial analysis. However, he did recover the following partial CVP chart:

Requirement 1. Select the correct graph that has each axis, sales revenue line, total costs line, fixed costs line, operating income area, and breakeven point labeled correctly. Refer to the discussion above to assist you in making the appropriate selection.

 

 

Transcribed Image Text:

40000Fixed Costspst Line OA. OB. D. 70000- 60000 5000sales Revenue Line 70000- 60000- 70000- 70000- 60000 5PAAPeost Line 40000RoGont 30000 60000- 500operating Income Area 40000- Breakeven P 30000 500erating Income Area 40000anakecSales Revenue Lin 30000- 20000 10000- Sales Revenue Lin even ealCost Line Total 30000 20000 10000 20000 Sales Revenue Line Total Costs Line Operating Income Area 10000 20000 Operating Income Area 10000 0F mm > 0102000908060000 Students (Units) 0102030405060z00 Students (Units) 01020304ÓBÓ6Ö700 Students (Units) Students (Units) Dollars Dollars Dollars of 40000Fixed Costspst Line OA. OB. D. 70000- 60000 5000sales Revenue Line 70000- 60000- 70000- 70000- 60000 5PAAPeost Line 40000RoGont 30000 60000- 500operating Income Area 40000- Breakeven P 30000 500erating Income Area 40000anakecSales Revenue Lin 30000- 20000 10000- Sales Revenue Lin even ealCost Line Total 30000 20000 10000 20000 Sales Revenue Line Total Costs Line Operating Income Area 10000 20000 Operating Income Area 10000 0F mm > 0102000908060000 Students (Units) 0102030405060z00 Students (Units) 01020304ÓBÓ6Ö700 Students (Units) Students (Units) Dollars Dollars Dollars of

Answer rating: 100% (QA)

1 Option B to be chosen as the correct graph Explanation The point wh... View the full answer