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LG1 12–3 Breakeven point—Algebraic and graphical Fine Leather Enterprises sells its
single product for $129.00 per unit. The firm’s fixed operating costs are
$473,000 annually, and its variable operating costs are $86.00 per unit.
a. Find the firm’s operating breakeven point in units.
b. Label the x axis “Sales (units)” and the y axis “Costs/Revenues ($),” and
then graph the firm’s sales revenue, total operating cost, and fixed operating
cost functions on these axes. In addition, label the operating breakeven point
and the areas of loss and profit (EBIT). LG1 12–4 Breakeven analysis Barry Carter is considering opening a record store. He
wants to estimate the number of CDs he must sell to break even. The CDs will
be sold for $13.98 each, variable operating costs are $10.48 per CD, and annual
fixed operating costs are $73,500.
a. Find the operating breakeven point in number of CDs.
b. Calculate the total operating costs at the breakeven volume found in
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