Ch 16: Assignment - Capital Structure Decisions To be profitable, a firm has to recover its conts. These costs include both as foedd svariable costs. One way that a fumevaluates at what bag would recover the invested costs is to calculate how many units of how much in dollar is necessary for the firm to earn a profit. aloe Mouse Manufacturers is considering a project that will have fixed costs of $12,000,000. The product will be sold for $37.50 per unit, and will incur a variable cost of $10.75 per unit. Given the cost structure of Blue Mouse, it will have to sell units to break even on this project (Qm). ed Marketing sales director of Blue Mouse Manufacturers don't think that the market for the firm's goods is big enough to sell enough units to make the company's target operating profit of $25,000,000. In fact, she believes that the firm will be able to sell only about 200,000 units. However, she also thinks the demand for Blue Mouse's product is relatively inelastic, the firm can increase the sain price. Assuming that Blue Mouse can sell 200.000 units what price must is set to meet the CFO'S EDIT goal of $25.000.000? O $195.75 per unit 5205.54 per unit $225.11 per unit $244,69 per unit What affects the firm's operating break-even point? O . Search CENGAGE MINDTAP Ch 16: Assignment - Capital Structure Decisions Marketing sales director of Blue Mouse Manufacturers doesn't think that the market for the firm's good is big enough to sell enough units to make the company's target operating profit of $25,000,000. In fact, she believes that the firm will be able to all only about 200.000 unts. However, she also thinks the demand for Blue Mouse's product is relatively inelastic, so the firm can increase the sale prio ady Tools . Auming that Blue Mouse can all 200.000 units what price must it to meet the CFO's goal of $25,000,000 ss Tips O $195.75 per unit as Tips 5205.54 per unit O $225.11 per unit or a FREE 7. ge Unlimited limited $244.69 per unit more What affects the firm's operating break-even point? Several factors act as operating bra en point. Based on the scene described the following table indicate whether these factors would increase terase or leave unchanged from bruken asuming that only the bed actor changes and the relevant factor rem constant Increase Decrease No Change ach The forme contains The product once increase gree of pat Werte imatherm Save & Cam o Type here to search Ch 16: Assignment - Capital Structure Decisions To be profitable, a firm has to recover its conts. These costs include both as foedd svariable costs. One way that a fumevaluates at what bag would recover the invested costs is to calculate how many units of how much in dollar is necessary for the firm to earn a profit. aloe Mouse Manufacturers is considering a project that will have fixed costs of $12,000,000. The product will be sold for $37.50 per unit, and will incur a variable cost of $10.75 per unit. Given the cost structure of Blue Mouse, it will have to sell units to break even on this project (Qm). ed Marketing sales director of Blue Mouse Manufacturers don't think that the market for the firm's goods is big enough to sell enough units to make the company's target operating profit of $25,000,000. In fact, she believes that the firm will be able to sell only about 200,000 units. However, she also thinks the demand for Blue Mouse's product is relatively inelastic, the firm can increase the sain price. Assuming that Blue Mouse can sell 200.000 units what price must is set to meet the CFO'S EDIT goal of $25.000.000? O $195.75 per unit 5205.54 per unit $225.11 per unit $244,69 per unit What affects the firm's operating break-even point? O . Search CENGAGE MINDTAP Ch 16: Assignment - Capital Structure Decisions Marketing sales director of Blue Mouse Manufacturers doesn't think that the market for the firm's good is big enough to sell enough units to make the company's target operating profit of $25,000,000. In fact, she believes that the firm will be able to all only about 200.000 unts. However, she also thinks the demand for Blue Mouse's product is relatively inelastic, so the firm can increase the sale prio ady Tools . Auming that Blue Mouse can all 200.000 units what price must it to meet the CFO's goal of $25,000,000 ss Tips O $195.75 per unit as Tips 5205.54 per unit O $225.11 per unit or a FREE 7. ge Unlimited limited $244.69 per unit more What affects the firm's operating break-even point? Several factors act as operating bra en point. Based on the scene described the following table indicate whether these factors would increase terase or leave unchanged from bruken asuming that only the bed actor changes and the relevant factor rem constant Increase Decrease No Change ach The forme contains The product once increase gree of pat Werte imatherm Save & Cam o Type here to search