How should mixed costs be classified in CVP analysis? What approach is used to effect the appropriate classification?
"Cost-volume-profit (CVP) analysis is based entirely on unit costs." Do you agree? Explain.
Linda Fearn asks your help in constructing a CVP graph. Explain to Linda:
(a) how the break-even point is plotted, and
(b) how the level of activity and dollar sales at the break-even point are determined.