Chapter 20: Q31E (page 1128)
Determine how each change effects the elements of the cost-volume-profit graph by placing an X in the appropriate column(s).
EFFECT | ||||||||
Sales Line | Fixed Cost Line | Total cost line | Breakeven point | |||||
Change | Slope Increases | Slope decreases | Shifts up | Shifts Down | Slope Increases | Slope Decreases | Increases | Decreases |
Sales price per unit Increases | ||||||||
Sales price per unit Decreases | ||||||||
Variable cost per unit Increases | ||||||||
Variable cost per unit decreases | ||||||||
Total fixed cost increases | ||||||||
Total fixed cost decreases |
Short Answer
The effects of the sales line, fixed cost line, total cost line, and break-even point is shown with the cross.