Draft a cost-volume-profit graph
Pemulis Basketballs sells basketballs for $15 each. The variable cost per unit of the basketballs is $6. Pemulis had total fixed costs of $300 per year.
Fixed costs are represented by a horizontal line because no matter the sales volume, fixed costs stay the same. Total variable costs are a diagonal line, starting at the origin (the point in the lower-left corner of the graph where there are zero sales).