Question: Refer to the data given in the preceding exercise for Bianca Bicycle Company. Required: 1. Prepare a cost-volume-profit graph for the company. (Scale the vertical

Refer to the data given in the preceding exercise for Bianca Bicycle Company. 


Required: 

1. Prepare a cost-volume-profit graph for the company. (Scale the vertical axis in millions of dollars.) 

2. Calculate Bianca Bicycle Company’s break-even point in units, and show the break-even point on the CVP graph. 

3. Explain why variable costing is more compatible with your CVP graph than absorption costing would be.

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