Prepare a Cost-Volume-Profit (CVP) Graph
Katara Enterprises distributes a single product whose selling price is $36 and whose variable expense is $24 per unit. The company’s monthly fixed expense is $12,000.
1. Prepare a cost-volume-profit graph for the company up to a sales level of 2,000 units.
2. Estimate the company’s break-even point in unit sales using your cost-volume-profit graph.
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