To be profitable, a firm has recover its costs. These costs include both its fixed and its variable costs. One way that a firm evaluates at what stage it would recover the invested costs is to calculate how many units or how much in dollar sales is necessary for the firm to earn a profit. Consider the case of Petrox Oil Co.: Petrox Oil Co. is considering a project that will have fixed costs of $12,000,000. The product will be sold for $37.50 per unit, and will incur a variable cost of $10.75 per unit. Given Petrox's cost structure, it will have to sell_ units to break even on this project (QBE). Petrox's marketing and sales director doesn't think that the firm's market is big enough for the firm to break even. In fact, she beve the the firm increase the sales price without significantly decreasing the volume of product sold). Assuming that the firm can sell 175,000 units, what price must it set to break even? $75.35 per unit $79.32 per unit $95.18 per unit $87.25 per unit What affects the firm's operating break-even point? would increase, decrease, or leave unchanged a firm's break-even quantity-assuming that only the listed factor changes and all other relenant remain constant. When other things are held constant, the higher a firm's operating leverage, the will be its business risk