4. Break-even analysis Aa Aa To be profitable, a firm has recover its costs. These costs include both fxed and variable costs. One way that a firm eval uates at what stage it would recover the invested costs is to calculate how many units or how much in dollar sales is necessary for the firm to earn a profit. Consider this case: Defense Dynamics Co. is considering a project that will have foxed costs of $10,000,000. Its sale price will be $37.50 per unit, and it will have a variable cost per unit of $12.80 Therefore, Defense Dynamics Co. has to sell units to break even on this project (QBE) Defense Dynamics Co.'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 pltof $15,000,000. In fact, she belleves that the firm wbe able to sel only about 175,000 units. However, she also thinks the demand for Defense Dynamis Co.'s product is relatively inelastic, so the firm can increase the sale price. Assuming that the firm can sell 175,000 units, what price must it set to meet the CFO'S EBIT goal of $15,000,0007 O $163.44 O $179.01 O $194.58 O $155.66 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 folliowing table, indicate whether these factors would increase a firm's break-even increase a firm's break-even quantity, decrease the break-even quantity, or lead