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4. BREAK-EVEN ANALYSIS: (25 points) Boeing has recently developed the 3-282. Development costs were between $40 ($40,000,000,000} billion and $50 {$50,000,000,000) billion. Assuming, production costs

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4. BREAK-EVEN ANALYSIS: (25 points) Boeing has recently developed the 3-282. Development costs were between $40 ($40,000,000,000} billion and $50 {$50,000,000,000) billion. Assuming, production costs (variable costs} are $200,000,000 per aircraft and the selling price is $250,000,000 per aircraft, please answer the following questions: in 2011, Boeing was producing 2 planes per month. In 2012 production increased to 3 aircraft per month; in 2013 4 planes per month; and in 2014 with the opening of a second plant in South Carolina, 8 planes per month. In 2015, production stabilized at 10 planes per month. The order book as of September 30, 2011 was 900 planes with options for 500 additional planes. A. [5 POINTS} How many aircraft must be produced for Boeing to breakeven? High Development Costs Low Development Costs

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