HELP ASAP PLEASE! Accounting class! Lorge Corporation has collected the following information after its first year of sales. Sal
es were $1,575,000 on 105,000 units; selling expenses $250,000 (40% variable and 60% fixed); direct materials $606,100; direct labor $250,000; administrative expenses $270,000 (20% variable and 80% fixed); and manufacturing overhead $357,000 (70% variable and 30% fixed). Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 10% next year.
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The point-slope form of the equation of a line is
where
is a point on the line, and
is the slope of the line.
We can use either one of the two given points as the point on the line.
We also need to find the slope. We can use the coordinates of the two given points to find the slope of the line.
The slope of the line that passes through points
and 
is
Let's find the slope using (-3, 5) as point 1 and (-1, 4) as point 2.
Now we use the point-slope formula with point 1 and the slope we found just above.
where
is a point on the line, and
is the slope of the line.
We can use either one of the two given points as the point on the line.
We also need to find the slope. We can use the coordinates of the two given points to find the slope of the line.
The slope of the line that passes through points
is
Let's find the slope using (-3, 5) as point 1 and (-1, 4) as point 2.
Now we use the point-slope formula with point 1 and the slope we found just above.