Charts and graphs are often used to help people understand numbers. To be helpful, charts and graphs must be clearly labeled.

Required:

1. Use the data from Application Problem 15-4, Instruction 1, to prepare a graph similar to the one on page 456.

Label the graph clearly.

2. Prepare a brief written explanation of the graph.

Data from Problem 15-4

The following information pertains to a product sold by Gomez Company:

Instructions:

Determine the net income or loss if 17,000 units are sold.

if 20,000 units are sold.

if 23,000 units are sold.

Transcribed Image Text:

Unit Sales Price $12.00 Unit Variable Costs $9.60 Unit Contribution Margin $2.40 Fixed Costs $48,000.00