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Philip Neilson owns fireworks store. Philip's fixed costs are $14,000 a month, and each fireworks assortment he sells costs, on average, $14. The average selling
Philip Neilson owns fireworks store. Philip's fixed costs are $14,000 a month, and each fireworks assortment he sells costs, on average, $14. The average selling price for an assortment is $35. a. The break-even point for Philip's fireworks store is units. (Enter your response rounded up to the next whole number.) b. Suppose Philip decides to expand his business. His new fixed expenses will be $25,500, but the average cost for a fireworks assortment will fall to just $9 due to Philip's higher purchase volumes. The new break-even point is units. (Enter your response rounded up to the next whole number.) c. At what volume level is Philip indifferent to the two capacity alternatives outlined above? Philip's indifference point is units. (Enter your response rounded to the nearest whole number.)
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