What is the firms breakeven point in sales


1. If a firm has fixed costs of $85,000, a variable cost per unit of $10 and sales price per unit of $15, what is the firm’s breakeven point in sales volume? $225,000 $255,000 $85,000 $51,000

2. Using appropriately labeled diagrams, show the profit diagrams for the buyer and seller (or writer) of a call option at maturity. Clearly indicate the breakeven point in the diagrams. Who has a limited downside risk and who has an unlimited downside risk, and why?

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Financial Management: What is the firms breakeven point in sales
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