Question: WK 5 Submission: Break - even Analysis Exercise please perform breakeven analysis calculations on P 1 2 - 4 problem. P 1 2 4 Breakeven
WK Submission: Breakeven Analysis Exercise please perform breakeven analysis calculations on Pproblem.
P Breakeven analysis Barry Carter is considering opening a video store. He wants to estimate the number of DVDs he must sell to break even. The DVDs will be sold for
$ each, variable operating costs are $ per DVD and annual fixed operating costs are $
a Find the operating breakeven point in number of DVDs
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 CDs per month, should he go into the video business?
d How much EBIT will Barry realize if he sells the minimum DVDs per month noted in part c
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