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Everything was incorrect except fixed costs. Click here to read the eBook: Business and Financial Risk BREAKEVEN AND OPERATING LEVERAGE Firm A Revenues and Costs
Everything was incorrect except fixed costs.
Click here to read the eBook: Business and Financial Risk BREAKEVEN AND OPERATING LEVERAGE Firm A Revenues and Costs (Thousands of Dollars) 280 Total Revenues Total Costs 240 Firm B Revenues and Costs (Thousands of Dollars) 280 Total Revenues/ Total Costs 240 200 Breakeven Point (30.240) 160 Fixed Costs 120 200 Breakeven Point 29.630.222.22 160 120 Fixed Costs 80 80 - 40 40 0 10 20 0 10 20 30 40 50 60 Units (Thousands 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 $ 80000 Variable costs per unit are $ 4.74 Sales price per unit is $ 7.41 b. Which firm has the higher operating leverage at any given level of sales? Firm BV 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. 30075 unitsStep by Step Solution
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