Question: Cost-Volume-Profit Graphs Lotts Company produces and sells one product. The selling price is $10, and the unit variable cost is $6. Total fixed cost is $10,000.

Required: 1. Prepare a CVP graph with "Units Sold" as the horizontal axis and "$ Profit" as the vertical axis. Label the break-even point on the horizontal axis.

2. Prepare CVP graphs for each of the following independent scenarios:

(a) Fixed cost increases by $5,000,

(b) Unit variable cost increases to $7,

(c) Unit selling price increases to $12, and

(d) Fixed cost increases by $5,000 and unit variable cost is $7.