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Firm A Revenues and Costs (Thousands of Dollars 280 Total Revenues 240 Total Costs Firm B Revenues and Costs (Thousands of Dollars 280 Total Revenues
Firm A Revenues and Costs (Thousands of Dollars 280 Total Revenues 240 Total Costs Firm B Revenues and Costs (Thousands of Dollars 280 Total Revenues Total Costs 2401 ----- 200 Breakeven Point 160 i (30.240) I Fixed Costs 120A Breakeven Point 20.513.174.359 Fixed Costs - - 80 40 - - 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 the nearest cent. Fixed costs: $ Variable costs per unit: $ Sales price per unit: $ 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 your answer to the nearest whole number. units Firm A Revenues and Costs (Thousands of Dollars 280 Total Revenues 240 Total Costs Firm B Revenues and Costs (Thousands of Dollars 280 Total Revenues Total Costs 2401 ----- 200 Breakeven Point 160 i (30.240) I Fixed Costs 120A Breakeven Point 20.513.174.359 Fixed Costs - - 80 40 - - 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 the nearest cent. Fixed costs: $ Variable costs per unit: $ Sales price per unit: $ 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 your answer to the nearest whole number. units
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