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6. Operating break-even graph analysis When does a firm achieve it's operating break-even point? Your company is considering altering its operations going forward but is

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6. Operating break-even graph analysis When does a firm achieve it's operating break-even point? Your company is considering altering its operations going forward but is unsure about how this should happen. You've decided to take it upon yourself to complete an operating break-even analysis for the company. Use the information in the table to complete the operating break-even graph that follows. Operational Information for Port Co. Selling price per unit $10 Variable cost per unit $2.5 Fixed operating costs $300 million Use the graph to determine the sales revenue and operating costs at various levels of production, as well as the operating break-even point. 1000 900 Operating costs 700 500 Sales Revenue Revenues and Costa (Millions of Dollars) 500 400 Break-even Point 300 200 30 30 50 70 Units Produced and Sold Assume that the actual sales for the current period equal 30 milion units. Considering your operating break-even analysis, wil Port Co, be profitable at this level of sales? Yes Not enough information given 800 Operating costs 700 600 Sales Revenue Revenues and Costs (Millions of Dollars) 500 400 Break-even Point 300 200 100 0 0 10 20 B0 100 30 40 50 50 70 Units Produced and Sold Assume that the actual sales for the current period equal 30 milion units. Considering your operating break-even analysis, will Port Co. be profitable this level of sales? Yes Not enough information given No

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