. The operating breakeven point is units.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management analysis
Section: Chapter Questions
Problem 16E
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Breakeven point-Algebraic and graphical Fine Leather Enterprises sells its single product for $128.88 per unit. The firm's fixed operating costs are $472,200 annually, and its
variable operating costs are $86.54 per unit.
a. Find the firm's operating breakeven point in units.
b. Label the x axis "Sales (units)" and the y axis "Costs/Revenues ($)," and then graph the firm's sales revenue, total operating cost, and fixed operating cost functions on these axes.
In addition, label the operating breakeven point and the areas of loss and profit (EBIT).
a. The operating breakeven point is
units. (Round to the nearest integer.)
Transcribed Image Text:Breakeven point-Algebraic and graphical Fine Leather Enterprises sells its single product for $128.88 per unit. The firm's fixed operating costs are $472,200 annually, and its variable operating costs are $86.54 per unit. a. Find the firm's operating breakeven point in units. b. Label the x axis "Sales (units)" and the y axis "Costs/Revenues ($)," and then graph the firm's sales revenue, total operating cost, and fixed operating cost functions on these axes. In addition, label the operating breakeven point and the areas of loss and profit (EBIT). a. The operating breakeven point is units. (Round to the nearest integer.)
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