Prepare a Profit Graph [LO2]

Capricio Enterprises distributes a single product whose selling price is $19 and whose variable expense is $15 per unit. The company’s fixed expense is $12,000 per month.

Required:

1. Prepare a profit graph for the company up to a sales level of 4,000 units.

2. Estimate the company’s break-even point in unit sales using your profit graph.