Problems, Ch. 12: Leverage and Capital Structure 12-1: Firm A has fixed operating costs of $40,000 per year and variable costs of $6.50 per unit. Sale price per unit is $16. Firm B has fixed operating costs of $45,000 per year and variable costs of $8.50 per unit. Sale price per unit is $20. Firm C has fixed operating costs of $36,000 per year and variable costs of $5.75 per unit. Sale price per unit is $18. (A) Determine the breakeven point, BE, in units for each firm. (B) Based on their respective breakeven points, rank each firm according to risk