CVP Graphs Relationships

Use the Interactive Graph to answer the following questions:

Lotts Company produces and sells one product. The sales price, variable cost and total fixed costs are shown below.

Sale price per unit	$10.00
Variable cost per unit	$5.00
Fixed costs	$10,000

What is the breakeven point in units?

units

Now, using the interactive graph tool, change the sales price to $12. This change in sales price causes the breakeven point to - Select your answer -increasedecreaseno changeItem 2 .

Reset the sales price to $10 and increase the variable cost per unit to $6 per unit. The changes in sale price and variable costs cause the breakeven point to - Select your answer -increasedecreaseno changeItem 3 .

Using the interactive graph tool, continue to change one of the 3 variables to analyze what happens to the cost and/or revenue lines, and the breakeven point.

Based on your analysis answer the following questions:

If the fixed cost increases, the breakeven point - Select your answer -increasesdecreasesno changeItem 4 . If the fixed cost decreases, the breakeven point - Select your answer -increasesdecreasesno changeItem 5 .

If the variable cost per unit increase, the breakeven point - Select your answer -increasesdecreasesno changeItem 6 . If the variable cost per unit decrease, the breakeven point - Select your answer -increasesdecreasesno changeItem 7 .

If the sales price increases, the breakeven point - Select your answer -increasesdecreasesno changeItem 8 . If the Sales price decreases, the breakeven point - Select your answer -increasesdecreasesno changeItem 9 .