Estimate the number of cds he must sell to break even

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Reference no: EM13302784

Jennifer is considering opening a music store. She wants to estimate the number of CDs he must sell to break even. The CDs will be sold for $13.98 each, variable operating costs are $10.48 per CD, and annual fixed operating costs are $73,500.

a. Find the operating breakeven point in number of CDs.
b. Calculate the total operating costs at the breakeven volume found in part a.
c. If Jennifer estimates that at a minimum he can sell 2,000 CDs per month should he go
into the music business?
d. How much EBIT will Jennifer realize if he sells the minimum 2,000 CDs per month

Reference no: EM13302784

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