Breakeven analysis Barry Carter is considering opening a used-book store. He wants to estimate the number...

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Breakeven analysis Barry Carter is considering opening a used-book store. He wants to estimate the number of books he must sell to break even. The books will be sold for $14.49 each, variable operating costs are $9.57 per book, and annual fixed operating costs are $72,800 a. Find the operating breakeven point in number of books 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 2,020 books per month, should he go into the business? d. How much EBIT will Barry realize if he sells the minimum 2,020 books per month noted in part (c)? Breakeven analysis Barry Carter is considering opening a used-book store. He wants to estimate the number of books he must sell to break even. The books will be sold for $14.49 each, variable operating costs are $9.57 per book, and annual fixed operating costs are $72,800 a. Find the operating breakeven point in number of books 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 2,020 books per month, should he go into the business? d. How much EBIT will Barry realize if he sells the minimum 2,020 books per month noted in part (c)?

Answer rating: 100% (QA)

a To find the operating breakeven point in number of books we need to use the formula Breakeven point in units Fixed costs Price per unit Variable cos... View the full answer