Baumann Industries is considering purchasing NewMark Corporation. Baumann’s board of directors has requested a breakeven analysis, based on cost data provided by NewMark’s accounting department. Analyze the graph below by answering the following questions.

1. Identify each of the four lines (labeled A-D) in the graph.

2. Estimate the breakeven point in dollars and units.

3. Estimate NewMark’s profit if the company can sell 9,000 units.

Transcribed Image Text:

Breakeven Analysis for NewMark Corporation $300,000.00 $250,000.00 $200,000.00 $150,000.00 $100,000.00 $50,000.00 B D $0 1 2 3 6 7 9 10 Unit Sales (in thousands)