question:

Assume the store sells only movie DVDs.

Step 1

Student 1: Make a list of all fixed costs you think would be associated with running this business. There is no other given information; this list is based on your general business knowledge. Estimate the amount of each fixed costper month

Student 2: Make a list of all variable costs you think would beassociated with running the business. There is no other given information; this list is based on your general business knowledge. Estimate the amount of each variable cost per unit

Step 2

Student 2:Read and comment on the fixed costs listed by your teammate. Do you disagree with any of the costs shown? Do you have any fixed costs to add? Each comment should consist of at least three tofour sentences.

Student 1: Read and comment on the variable costs listed by your teammate. Do you disagree with any of the costs shown? Do you have any variable costs to add? Each comment should consist of at leastthree to foursentences.

Step 3

Given the fixed and variable costs your team has identified and agreed upon, compute the break-even point forthis business in either units or dollar sales.

Step 4

Assess the prospects ofthis business making a profit. Also, read your teammate's assessment and comment on it. Each comment should consist of at leastthree to foursentences.