RBF CORPORATION is considering opening a bakery store. He wants to estimate the number of bread he must sell to break even. Each bread will be sold for $13.98, variable operating costs are $10.48 per bread, and annual fixed operating costs are $73,500.
a. Find the operating breakeven point in number of breads.
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 breads per month, should he go into the business?
d. How much EBIT will Barry realize if he sells the minimum 2,000 breads per month noted in part c?
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