Breakeven analysis Barry Carter is considering opening a used-book store. He wants to estimate the...
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Breakeven analysis Barry Carter is considering opening a used-book store. He wants to estimate the number of books he must sell to break even. The books will be sold for $13.98 each, variable operating costs are $10.48 per book, and annual fixed operating costs are $73,500. a. Find the operating breakeven point in number of books. 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 2,000 books per month, should he go into the business? d. How much EBIT will Barry realize if he sells the minimum 2,000 books per month noted in part (c)
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