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Business, 30.12.2021 01:00 kiasiab17

Assume that you are part of the accounting team for Kolbe Productions. The company currently expects to sell 964 units for total revenue of $21,100 each month. Kolbe Productions estimates direct materials costs of $3,150, direct labor costs of $4,200, variable overhead costs of $2,100, and variable selling and administrative costs of $1,050. Fixed costs of $6,600 are also expected, which includes fixed overhead and selling and administrative costs. Using this information, complete the contribution margin income statement shown below. Next, complete the formula below to determine the break-even units.
Total Fixed Costs / Contribution Margin per Unit = Units

A profit-volume graph helps managers to visualize the relationship between profits and units sold. The data for Logan Digital has been used to construct the profit-volume graph below. The purple points (diamond symbols) plot the profit line. The operating loss is the shaded area bordered by the red points (cross symbols). The operating profit is the area bounded by the green points (triangle symbols).

Required:
Graph the correct profit-value graph.

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Assume that you are part of the accounting team for Kolbe Productions. The company currently expects...

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