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10. Problem 13.10 (Breakeven and Operating Leverage) eBook Firm A Revenues and Costs (Thousands of Dollars) 280 Total Revenues Total Costs 240 200 IN 160
10. Problem 13.10 (Breakeven and Operating Leverage) eBook Firm A Revenues and Costs (Thousands of Dollars) 280 Total Revenues Total Costs 240 200 IN 160 Breakeven Point (32.000 200.000 120 Firm B Revenues and Costs (Thousands of Dollars) 280 Total Revenues/ 240 Total Costs 200 Breakeven Point (30.240) 160 Fixed Costs 120 80 80 Fixed Costs 40 40 0 0 10 20 30 40 50 60 Units (Thousands 10 20 30 40 50 60 Units (Thousands) a. Given the graphs above, calculate the total fixed costs, variable costs per unit, and sales price for Firm A. Firm B's fixed costs are $120,000, its variable costs per unit are $4, and its sales price is $8 per unit. Round your answers to the nearest cent. Fixed costs: $ Variable costs per unit: $ Sales price per unit: $ b. Which firm has the higher operating leverage at any given level of sales? -Select- C. At what sales level, in units, do both firms earn the same operating profit? Round your answer to the nearest whole number. units
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