Firm A

Revenues and Costs

$($thousands of dollars$)$

$28$nt Tntal Rouonuer Total Costs

a$.$ Given the graphs above, calculate the total fixed costs, variable costs per unit, and sales price for Firm A$.$ Firm B$\text{'}$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?

c$.$ At what sales level, in units, do both firms earn the same operating profit? Round your answer to the nearest whole number.

units