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16-2: Break Even Analysis: Larsen Films' is analyzing its cost structure. Its fixed operating costs are $600,000, its variable costs of $2.50 per unit produced,
16-2: Break Even Analysis: Larsen Films' is analyzing its cost structure. Its fixed operating costs are $600,000, its variable costs of $2.50 per unit produced, and its products sell for $4.00 per unit.What is the company's breakeven point, i.e., at what unit sales volume would income equal costs? If the firm sells 500,000 units, what is its degree of operating leverage, the degree of financial leverage, and the degree of total leverage?
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