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    CVP Analysis

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    Please show how to make this graph as well. Thanks

    Embleton Company estimates that variable costs will be 40% of sales, and fixed costs will total $900,000. The selling price of the product is $5.

    a). Prepare a CVP graph, assuming maximum sales of $4,000,000.
    (Note: Use $500,000 increments for sales and costs and 100,000 increments for units)
    b). Compute the break-even point in (1) units and (2) dollars.

    c). Compute the margin of safety in (1) dollars and (2) as a ration, assuming actual sales are $2 million.

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    Solution Summary

    CVP graph and compute break-even point and margin of safety.