Determine the breakeven point

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Firm A has fixed operating costs of $40,000 per year and variable costs of $6.50 per unit. Sale price per unit is $16.

Firm B has fixed operating costs of $45,000 per year and variable costs of $8.50 per unit. Sale price per unit is $20.

Firm C has fixed operating costs of $36,000 per year and variable costs of $5.75 per unit. Sale price per unit is $18.

(A) Determine the breakeven point, BE, in units for each firm.

(B) Based on their respective breakeven points, rank each firm according to risk.

Reference no: EM132678374

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