13-10 A Breakeven and operating leverage
     a.    Given the graphs shown below, 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.
b.	Which firm has the higher operating leverage at any given level of sales? Explain
c.	At what sales level, in units, do both firms earn the same operating profit?

Breakeven Charts for Problem 13-10

Firm A
Revenues and Costs (Thousands of Dollars)

Firm B
Revenues and Costs (Thousands of Dollars)

Total Costs
Total Revenues
Total Costs
Total Revenues
280
280
10
30
20  25  30
 
40         50         60 Units (Thousands)

40         50 Units (Thousi