1. A. Given the graphs above, calculate the total fixed costs, variable costs per unit, and sales price
for Firm A. Firm B's fixed costs are $120,000, its variable costs per unit are $4, and its sales
price is $8 per unit. Round your answers to the nearest cent.
Fixed cost __
Variable costs per unit___
Sales price per unit ___
B. Which firm has the higher operating leverage at any given level of sales?
C. At what sales level, in units, do both firms earn the same operating profit? Round your answer
to the nearest whole number. Firm A Firm B Revenues and Costs Revenues and Costs
(Thousands of Dollars) (Thousands of Dollars)