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