2. Break-even analysis Aa Aa E Consider this case: Roxxon Inc. is considering a project that will have foxed costs of $12.000.000. Its sale price will be $37.50 per unit, and it will have a variable cost per unit of $10.75. Therefore, Roxxon Inc. has to sell units to break even on this project (Que). Roxxon Inc.'s marketing sales director doesn't think that the market for the firm's goods is big enough to sell enough units to make the company's target operating profit of $15,000,000. In fact, she believes that the firm will be able to sell only about 150,000 units. However, she also thinks the demand for Roxxon Inc.'s product is relatively inelastic, so the firm can increase the sale price. Assuming that the firm can sell 150,000 units, what price must it set to meet the CFO's EBIT goal of $15,000,000? O $190.75 $219.36 O $200.29 O $238.44 What affects the firm's operating break-even point? Several factors affect a firm's operating break-even point. Based on the scenarios described in the following table, indicate whether these factors would increase a firm's break-even quantity, decrease the break-even quantity, or lead to no change. Increase Decrease No Change Only the fixed costs increase. Only the variable cost per unit olo the CFO's EBIT goal of $15,000,000? $190.75 $219.36 $200.29 $238.44 What affects the firm's operating break-even point? Several factors affect a firm's operating break-even point. Based on the scenarios described in the following table, indicate whether these factors would increase a firm's break-even quantity, decrease the break-even quantity, or lead to no change. Increase Decrease No Change o Only the fixed costs increase. Only the variable cost per unit cost per unit decreases. The amount of debt increases increases causing interest expense to Increase. O o When a large percentage of a firm's costs are fixed, the firm is said to have a degree of operating leverage