Set up a break-even chart similar to the one in Exhibit 6-12 with proportional scales from zero to \($72,000\) (in \($12,000\) increments) on the vertical axis and from zero to 12,000 units of production (in 2,000-unit increments) on the horizontal axis. Prepare the break-even chart for Morton Company, assuming total fixed costs of \($18,000\) and unit selling price and unit variable cost for the company’s one product of \($6\) and \($4,\) respectively. Label the total revenue line and the total cost line. Indicate the break-even point in units and dollars.

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Exhibit 6-12 Fozzari for CR1 Cost-Volume-Profit Chart $4,500 $4,009 Dollars (thousands) $2,466 $595 Loss area Break-even point Profit Variable costs Fixed costs 1,644 Total revenue Total cost B Profit area 0 3,000 Number of Bikes Manufactured and Sold