Question

find the break - even point and the operating loss

cost	operating expense	break - even point	reduced price	operating loss	absolute loss

cost	operating expense	break - even point	reduced price	operating loss	absolute loss

Explanation:

Step1: Calculate Break - even Point

The break - even point is the sum of the cost and the operating expense. The formula for the break - even point (BEP) is \(BEP=\text{Cost}+\text{Operating Expense}\).
Given that the cost is \(\$49\) and the operating expense is \(\$17\), we substitute these values into the formula: \(BEP = 49+17\).
\(49 + 17=66\).

Step2: Calculate Operating Loss

The operating loss is calculated as the difference between the break - even point and the reduced price when the reduced price is less than the break - even point. The formula for operating loss (OL) is \(OL = BEP-\text{Reduced Price}\).
We know that \(BEP = 66\) and the reduced price is \(\$55\). Substituting these values into the formula: \(OL=66 - 55\).
\(66-55 = 11\).

Answer:

The break - even point is \(\$66\) and the operating loss is \(\$11\).