What is the operating breakeven point in units for each firm


Problem: Given the prices and cost data shown in the accompanying table for each of the three firms, F, G, and H, answer the following questions.

Firm                                               F              G            H
Sale price per unit                       $18.00      $21.00    $30.00
Variable operating cost per unit      6.75        13.50       12.00
Fixed operating cost                     45,000     30,000     90,000

a. What is the operating breakeven point in units for each firm?

b. How would you rank these firms in terms of their risk?

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Finance Basics: What is the operating breakeven point in units for each firm
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