To be profitable, a firm has to 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. Blue Mouse Manufacturess is considering a project that will have fixed costs of $15,000,000. The product will be sold for $37.50 per unit, and will incur a variable cost of $10.75 per unit. Given the cost structure of Blue Mouse, it will have to sell units to break even on this project (Quk). Marketing and sales director of Blue Mouse Manufacturers doesn't think that the firm's market is big enough for the firm to break even. In fact, she believes that the firm will be able to sell only about 175,000 units. Howevef, she afso thinks that the demand for Blue Mouse's product is relatively inelastic (so the firm can increase the sales price without significantfy decreasing the volume of product sold). Assuming that Blue Mouse can sell 175,000 units, what price must it set to break even? $96.46 per unit \$115,75 per unit $106,1t ber unit 191.64 per unit What affects the firm's operatiou hreak-even point? What affects the firm's operating break-even point? Several factors affect a firm's operating break-even point. Based on the scenarios described in the following table, indicate whether these factors woold increase, decrease, of leave unchanged a firm's break-even quantity-assuming that only the listed factor changes and all other relovant factors remain constant. When a large percentage of a firta's costs are fired, the firm is said to have a degree of operating teverade