QUESTION (3) CRITICAL THINKING What is meant by the term breakeven point? Why should a manager be concerned about the breakeven point? QUESTION (2) Nancy's Niche sells a single product. 8,000 units were sold resulting in $80,000 of sales revenue, $20,000 of variable costs, and $10,000 of fixed costs. The contribution margin per unit is? The breakeven point in total sales dollars is: To achieve $100,000 in operating income, sales must total: If variable costs decrease by $1 per unit, the new breakeven point is: CVP Analysis - Case Study QUESTION (1) Patrick Ross has three booth rental options at the county fair where he plans to sell his new product. The booth rental options are: Option 1: Option 2: $1,000 fixed fee, or $750 fixed fee + 5% of all revenues generated at the fair, or 20% of all revenues generated at the fair. Option 3: The product sells for $37.50 per unit. He can purchase the units for $12.50 each. Compute the breakeven point for each option Which option should Patrick choose to maximize income