Karlik Enterprises distributes a single product whose selling price is $24 and whose variable expense is $18 per unit. The company’s monthly fixed expense is $24,000.

Required:
1. Prepare a cost-volume-profit graph for the company up to a sales level of 8,000 units.
2. Estimate the company’s break-even point in unit sales using your cost-volume-profit graph.

Answer rating: 100% (QA)

1 Determine total sales when sales are 8000 units Total sales Salesunit Sellingpriceperunit ... View the full answer