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Breakeven analysis Barry Carter is considering opening a used-book store. He wants to estimate the number of books he must sell to break even. The
Breakeven analysis Barry Carter is considering opening a used-book store. He wants to estimate the number of books he must sell to break even. The books will be sold for $13.52 each, variable operating costs are $10.02 per book, and annual fixed operating costs are $73,600. a. Find the operating breakeven point in number of books. b. Calculate the total operating costs at the breakeven volume found in part (a). c. If Barry estimates that at a minimum he can sell 2,060 books per month, should he go into the business? d. How much EBIT will Barry realize if he sells the minimum 2,060 books per month noted in part (c)? a. The operating breakeven point is units. (Round to the nearest integer.) b. The total operating costs at the breakeven volume is $ (Round to the nearest dollar.) c. The total units that Barry can sell in a year is units. (Round to the nearest integer.) Should Barry go into the business? (Select from the drop-down menu.) Barry go into the used books business. d. The EBIT will be $ . (Round to the nearest dollar.)
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