Question: Blank Contract Carrier Leasing Fixed cost $5,000 $19,000 Variable cost $500 $50 You have a choice for 2024 shipments to sign a contract with a

Blank Contract Carrier Leasing

Fixed cost $5,000 $19,000

Variable cost $500 $50

You have a choice for 2024 shipments to sign a contract with a contract freight carrier or to lease your own fleet. FC and VC are shown. If you make $1000 profit BEFORE your VC costs are subtracted, then answer the following:

1. What is the BEP for the Contract Carrier?

What is the BEP for the Leasing option

Which option provides the better BEP

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