Question: Breakeven analysis Barry Carter is considering opening a music store. He wants

to estimate the number of CDs he must sell to break even. The CDs will be sold

for $13.98 each, variable operating costs are $10.48 per CD, and annual fixed

operating costs are $73,500.

1. Find the operating breakeven point in number of CDs.
2. Calculate the total operating costs at the breakeven volume found in part a.
3. If Barry estimates that at a minimum he can sell 2,000 CDs per month,
   should he go into the music business?
4. How much EBIT will Barry realize if he sells the minimum 2,000 CDs per

month noted in part c ?

Price: $2.99

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Deliverable: Word Document