Question

Firm Breakeven comparisons--- Algebraic Given the price and cost data shown in the accompanying table for each of the three firms, F. G and H (Click on the icon here in order to copy the contents of the datatable below into a spreadsheet.) F G H Sale price per unit $13.78 $18.07 S2528 Variable operating cost per unit 7.12 13.34 12 29 Fived operating cost 42.000 35.000 95,000 a. What is the operating breakeven point in units for each firm? b. How would you rank these firms in terms of their risk? a. The operating breakeven point for company F is units. (Round to the nearest integer.) Enter your answer in the answer box and then click Check Answer 3 parts remaining Clear All Check Answer

Answer 1

break even point = fixed cost /contribution per unit

	firm	F	G	H
	sale price	13.78	18.07	25.28
less	variable cost	7.12	13.34	12.29
	contribution	6.66	4.73	12.99
	fixed cost	42000	35,000	95,000
fixed/contribution	break even	6306	7400	7313

for f 6306 units

for g 7400 units

for H 7313 units

firms which has highest break even will be more risky

so ranking is

G>H>F