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P13--7 urs, got into the novelle made little figurines Breakeven analysis Molly Jasper and her sister, Caitlin Peters, got into business almost by accident. Molly,

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P13--7 urs, got into the novelle made little figurines Breakeven analysis Molly Jasper and her sister, Caitlin Peters, got into business almost by accident. Molly, a talented sculptor, often made little gifts for friends. Occasionally, she and Caitlin would set up a booth ataca and sell a few of the figurines along with jewelry that Caitlin made. Little by la demand for the figurines, now called Mollycaits, grew, and the sisters began ! reproduce some of the favorites in resin, using molds of the originals. The day when a buyer for a major department store offered them a contract to produce 1,500 figurines of various designs for $10,000. Molly and Caitlin realized that it! was time to get down to business. To make bookkeeping simpler, Molly had price! all the figurines at $8.00 each. Variable operating costs amounted to an average of $6.00 per unit. To produce the order, Molly and Caitlin would have to rent inds trial facilities for a month, which would cost them $4,000. a. Calculate Mollycaits' operating breakeven point. b. Calculate Mollycaits' EBIT on the department store order. c. If Molly renegotiates the contract at a price of $10.00 per figurine, what EBIT be? d. If the store refuses to pay more than $8.00 per unit but is willing to ne quantity, what quantity of figurines will result in an EBIT of $4,000 e. At this time, Mollycats come in 15 different varieties. Whereas able cost per unit is $6.00, the actual cost varies from unit to unit. mendation would you have for Molly and Caitlin with regard to numbers and types of units that they offer for sale? Whereas the average to nit to unit. What can

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