EXERCISE 6-2 Prepare a Cost-Volume-Profit (CVP) Graph [LO2] Karlik Enterprises distributes a single product whose selling price is $24 and whose variable ex- pense 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 6-3 Prepare a Profit Graph [LO2] Jaffre Enterprises distributes a single product whose selling price is $16 and whose variable ex- pense is $11 per unit. The company's fixed expense is $16,000 month. per 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. EXERCISE 6-4 Computing and Using the CM Ratio [LO3] Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total vari- able expenses were $120,000, and fixed expenses were $65,000. Required: 2 What is the company's contribution margin (CM) ratio? Estimate the change in the company's net operating income if it were to increase its total sales by $1,000.