PROBLEM 12-4
BREAKEVEN POINT AND OPERATING LEVERAGE
DATA
Avg selling price		85
Variable cost		44
Fixed costs		150,000
A)
Breakeven point =
B)
Dollar sales volume =
C)
		Units:
Firm's profit or loss		7,000	9,000	15,000
Sales		595,000	765,000	1,275,000
Variable costs		308,000	396,000	660,000
Revenue before FC		287,000	369,000	615,000
Fixed costs		150,000	150,000	150,000
EBIT		0