Question: In response to a request from your immediate supervisor, you prepared a CVP graph portraying the cost and revenue characteristics of your companys product and

In response to a request from your immediate supervisor, you prepared a CVP graph portraying the cost and revenue characteristics of your company’s product and operations.

Explain how the lines on the graph and the break-even point would change if

(a) the selling price per unit decreased,

(b) fixed cost increased throughout the entire range of activity portrayed on the graph, and

(c) variable cost per unit increased.

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