Katara Enterprises distributes a single product whose selling price is $30 and whose variable expense is $16 per unit. The company’s monthly fixed expense is $18,900.
1. Prepare a cost-volume-profit graph for the company up to a sales level of 2,000 units. (Use the line tool to draw three single lines (Total Sales Revenue, Fixed Expenses, Total Expenses). Each line should only contain the two endpoints. For the CVP Graph to grade correctly, you must enter the exact coordinates of each endpoint. To enter the exact coordinates, double click on the point and enter the correct values of x and y.)
2. Calculate the company’s break-even point in unit sales.