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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.
max weinberg is studying for an accounting test and has developed the following questions about investments.1. what are
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