you will be doing tasks related to a retail store selling movie DVDs. Assume the store sells only movie DVDs.

Step 1

Student 1: Make a list of all fixed costs you think would be associated with running this business. There is no other given information; this list is based on your general business knowledge. Estimate the amount of each fixed cost.

Student 2: Make a list of all variable costs you think would beassociated with running the business. There is no other given information; this list is based on your general business knowledge. Estimate the amount of each variable cost.

Step 2

Student 2:Read and comment on the fixed costs listed by your teammate. Do you disagree with any of the costs shown? Do you have any fixed costs to add?

Step 3

Given the fixed and variable costs your team has identified and agreed upon, compute the break-even point forthis business in either units or dollar sales.

Step 4

Assess the prospects ofthis business making a profit.