both 2 and 3

EXERCISE 5-2 Prepare a Cost-Volume-Profit (CVP) Graph L05-20 Karlik Enterprises distributes a single product whose selling price is $24 per unit 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. EXERCISE 5-3 Prepare a Profit Graph L05-20 Jaffre Enterprises distributes a single product whose selling price is $16 per unit and whose variable expense is $11 per unit. The company's fixed expense is $16,000 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. Hind the CM Ratio L05-30