Unformatted text preview: t $24.95 to break even. She has estimated CHAPTER 11 Leverage and Capital Structure 455 fixed operating costs of $12,350 per year and variable operating costs of $15.45
per arrangement. How many flower arrangements must Kate sell to break even
on operating costs?
LG1 11–2 Breakeven comparisons—Algebraic Given the price and cost data shown in the
accompanying table for each of the three firms, F, G, and H, answer the following questions.
Sale price per unit
Variable operating cost per unit
Fixed operating cost F G H $ 18.00 $ 21.00 $ 30.00 6.75 13.50 12.00 45,000 30,000 90,000 a. What is the operating breakeven point in units for each firm?
b. How would you rank these firms in terms of their risk?
LG1 11–3 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 uni...
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