A. American Apparel, Inc. has fixed annual operating costs of $75,000. The average selling price per unit is $14.99 and the variable cost per unit is $4.99. Based on this information, calculate the breakeven sales level in units.
B. Green Grocers Wholesalers, Inc. has fixed operating costs of $200,000. The average selling price per master case is $75; the variable cost per master case is $50. Calculate the firm’s operating breakeven point in sales dollars.