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dropdown options are: higher, lower To be profitable, a firm has to recover its costs. These costs include both its fixed and its variable coster,
dropdown options are: higher, lower To be profitable, a firm has to recover its costs. These costs include both its fixed and its variable coster, One way that a firm evaluates at what stage 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 profiti Petrox oil Company is considering a project that will have fixed costs of $10,000,000, The product will be sold for $32,50 per unit, snd will incur a varlable cost of $11.25 per unit. Glven the cost structure of Petrox, it will have to sell units to break even on this project (Qhe). Marketing and sales director of Petrox. Oll Company doesn't think that the firm's market is big enough for the firm to break even. In fact, she belleves that the firm will be able to sell only about-150,000 units, However, she also thinks that the dermand for Petrax's product is relatively inelastic (so the firm can increase the saies price without significantly decreasing the volume of product sold). Assuming that Patrox can sell 150,000 units, what price must it set to break even? $74.02 per unit $93.50 per unit $77.92 per unit \$85.71 per unit. What affects the firm's operating break-even point? Several factors affect a firm's operating break-even point. Based on the scenarios describad in the following table, indicate whether these factors would increase, decrease, or leave unchanged a firm's break-aven quantity-assuming that only the listed factor changes and all other relevant factors remain constant. When other things are held constant, the higher a firm's operating leverage, the will be ts business riok
dropdown options are: higher, lower
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