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Suppose it costs BPM $ 1 2 5 to purchase Rida s headphones and operating expenses represent 3 5 % of the cost. a .

Suppose it costs BPM $125 to purchase Ridas headphones and operating expenses represent 35% of the cost.
a. If the headphones sell for $160, calculate the break-even point for this product.
b. Did BPM make a profit or take a loss for selling the headphones for $160? How much was the profit or loss?
One item that hasnt sold well is their 6-month music subscription. It is normally priced at $48, but BPM plans to mark down the subscription by 40% at the festival. To offer the product, BPM pays $30 in royalty fees and operating expenses for the subscription service are roughly 40% of the cost.
a. What is the operating loss for selling at this price?
b. What is the absolute loss for selling at this price?

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