Question: Katara Enterprises distributes a single product whose selling price is $36 and whose variable cost is $24 per unit. The companys monthly fixed expense is

Katara Enterprises distributes a single product whose selling price is $36 and whose variable cost is $24 per unit. The company’s monthly fixed expense is $12,000.

Required:

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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