Question: Can you identify your fixed costs and your variable costs? Please, answer the following based on the break-even point. 1) Find the break-even units if

Can you identify your fixed costs and your variable costs? Please, answer the following based on the break-even point.

1) Find the break-even units if fixed costs are $12,000 and you are selling coffee at $3.60 with a cost of $0.40 per cup.

2) Using the same fixed and variable costs as in question 1, what is the new breakeven point? equilibrium if the price is reduced to $2.90?

3) Using the same fixed and variable costs from question 1, what is the break-even price if you project that you will sell 3,000 cups of coffee?

4) How does knowing break-even units help you with other decisions? (four-five sentences).

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