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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 240 200 Breakeven Point (30, 240) 160 Fixed Costs 120 2005 160 Breakeven Point (25, 187.5) 120 80 80 Fixed Costs 40F 40 0 0 10 20 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 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- A
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