ANDY’S AUTO MANUFACTURING CO. manufactures red trucks and sells them in Northern Ontario. Andy is confident that he can sell enough trucks to be profitable. Direct materials are available from Costin’s Auto Supply and the variable cost per truck is $12,000. The direct labour rate is $67 per hour and it takes 120 hours to manufacture one truck. The fixed costs are $100,000 for this relevant range. The selling price for each truck is $23,995. ANDY’S AUTO MANUFACTURING CO. manufactures Draw the CVP graph and label the profit and loss areas.

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