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. Dynamic Defenses Corporation is considering a project that will have fixed costs of $10,000,000, The product will be sold for $32,50 per unit, and will incur a variable cost of $11.25 per unit. Given the cost structure of Dynamic Defenses, it will have to sell units to break even on this project ( Qa). Assuming that Dynamic Defenses can sell 150,000 units, what price must it set to break even? $93.50 per unit $35.71 per unit $74.02 per unit $77,92 per unit What affects the firm's operating break-even point? Several foctors affect a firms operating break-even point. Based on ther scenarios described in the following table, indicate whether these factors would increase, decrease, or leave unchanged a firms break-fven quantify-assuming that only the bsted factor changes and all other relevant factors remain constant. Marketing and sales director of Dynamic Defenses Corporation 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 150,000 units. However, she also thinks that the demand for Dynamic Defenses's product is relatively inelastic ( s0 the firm can increase the sales price without significantly decreasing the volume of product sold). Assuming that Dynamic Defenses can sell 150,000 units, what price must it set to break even? $93.50 per unit $85.71 per unit $74.02 per unit $77.92 per unit What affects the firm's operating break-even point? Several factors affect o firm's operating break-even point. Based on the scenarios described in the following table, indicate whether these factors would increase, decrease, or leave unchanged a firm's break-even quantity-assuming that only the listed foctor changes and all other relevant factors remain constant. When other things are held constent, the higher a firms operating leverage, the will be its business risk