Cost 1. An important distinction is made in the calculation between fixed and variable costs. Fixed costs do not change with the units sold (at least in the short term) Variable costs depend on the units sold in the period Identify each of the following as a fixed (F) or variable (V) cost in the context of BizCafe or Coffee Advertising Rent Salaries Cups Utilities Use the break-even formula to calculate the break-even units if fixed costs are $12,000 and you are selling coffee for $3.60 at a cost of $0.40 per cup 3. Using the same fixed and variable costs as in question 2, what is the new break-even point if price is lowered to $2.90? You can calculate a break-even price if you have an estimate of the number of units you will sell. The revised break-even formula is Break-even Price Variable Cost+Fixed Costs Projected Units 4. Using the fixed and variable costs from question 2, what is the break -even price if you project that you will sell 3,000 cups of coffee? 5. How can knowing the break-even units help you with other decisions