1.If your business had fixed costs of $500,000 and a 75% variable cost rate, your break-even point is $________. If your fixed costs are $800,000 and your variable costs are only 60%, your break-even point is $______. (Fill in the blanks)

Which operation would you prefer to own in a growth market? How about a recession?

2.Variable cost per unit = $950.17 purchasing cost / 50 total sales = $19.00 variable cost per unit; Fixed costs= $180. Selling each unit for $25, would you break even? How many units would reach break even? What would be the profit before tax?

If you want to make $800 in profit, how many units should you sell at the current price? What price would you need to sell the meal for at 50 units to make $800 in profit?