Total operating costs at breakeven volume found

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Reference no: EM132166041

Barry Carter is considering opening a record store. He 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 Barry estimates that at a minimum he can sell 2,000 CDs per month, should he go into the record business?

d. How much EBIT will Barry realize if he sells the minimum 2,000 CDs per month noted in part c?

Reference no: EM132166041

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