Break even point - Changing cost/revenues JWG Company publishes Creative Crosswords. Last year, teh book of puzzles sold for $10.55 with variable operating cost per book of $7.75 and fixed operating cost of $41,000.

a. How many books must JWG sell this year to achieve the breakeven point for the stated operating cost, if all numbers remain the same as for last year?

b. How many books must JWG sell this year to achieve the break even point for the stated operating cost, if fixed operating cost increase to $44,000 and all other figures remain the same?

c. How many books must JWG this year to achieve the breakeven point for the stated operating cost, if the selling price increases to $11.06 and all other cost remain the same as for last year?

d. How many books must JWG this year to achieve the breakeven point for the stated operating cost, if the variable operating cost per book increases to $8.08 and all other figure remain the same?

e. What conclusion about the operating breakeven point can be drawn from your answers?

_______________________________________________________________________________________________

a. The breakeven point will be __________________ (books. Round to the nearest integer.)

b. The breakeven point will be __________________ (books. Round to the nearest integer.)

c. The breakeven point will be __________________ (books. Round to the nearest integer.)

d. The breakeven point will be __________________ (books. Round to the nearest integer.)

e. What conclusion about the breakeven point can be drawn from your answers?

(Select the best answer below.)

___ A. There is no direct relationship between cost, price and operating breakeven point.

___ B. increases in cost and price raise the operating breakeven point.

___ C. Increases in cost lower the operating breakeven point, while increases in price decrease it.

___ D. Increases in cost raise the operating breakeven point, while increases in price lower it.