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hi
Can anyone help me in understanding the last graph on examiner artical on CVP, i am confused what figures are ploted on the graph, this is something completely new to me and i studied last year for f5 so my notes have no explenation for cvp, please helpHi, I assume u are refering to the PV Chart: The examiners graph is confusing cos the figures are not on the correct point, after reading and understanding the aticle, i suggest u go to BPP text if u have one and check the topic there, then u will understand it better, if u still have a prob, pls let me know.
What figures needs to be ploted is basicly starting with the highest jsut plot the cummulative p/L on Y axis and cumulative sales rev on X-axis and remember that the fixed cost rep the loss of $200000 at 0 sales revenue, that means u plot the figure of $-200 on Y axis agst 0 sales, then the highest c/s product x will be $+200 0n Y axis agst x- axis figure of 1m, the product Y will be $650 on Y and $1650 on X, the straight line wc repr the avearge is just joining the loss of $200 to the max point of $1650 rev.
Hope this make a little sense
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