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BREAKEVEN AND OPERATING LEVERAGE Firm A Revenues and Costs Thousands of Dollars) Firm B Revenues and Costs Dollars) Total Costs 280 Total Revenues, Total Costsos
BREAKEVEN AND OPERATING LEVERAGE Firm A Revenues and Costs Thousands of Dollars) Firm B Revenues and Costs Dollars) Total Costs 280 Total Revenues, Total Costsos o Dols 280 Total Reven 240 200 160 120 80 4 0 200---- Breakeven Point 30.24) I Breakeven Point i (25.000,200.000) 160 120 80 4 0 I Fixed Costs Fixed Costs 0 10 20 30 40 50 60 Units (Thousands) 0 10 20 30 40 50 60 Units (Thousands) a. Given the graphs above, calculate the total fixed costs, variable costs per unit, and sales price for Firm A. Firm B's fixed costs are $120,000, its variable costs per unit are $4, and its sales price is $8 per unit. Round your answers to two decimal places. Fixed costs are $ Variable costs per unit are $ Sales price per unit is $ b. Which firm has the higher operating leverage at any given level of sales? - Select- c. At what sales level, in units, do both firms earn the same operating profit? Round intermediate calculations to 2 decimal places. Round your answer to the nearest whole number. units
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