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Compare the respective EBITDA break-even points and the cross-over level in units and state your conclusions. $160 EBITDA for automated $120 production as the number
Compare the respective EBITDA break-even points and the cross-over level in units and state your conclusions.
$160 EBITDA for automated $120 production as the number of units sold changes 280 EBITDA ($ thousands) EBITDA for manual production as the number of units sold changes 80 -$40 5,000 10.000 15,000 20,000 Number of Units Sold EXHIBIT 13-4 EBITDA for Different Levels of Unit Sales The sensitivity of EBITDA to changes in unit sales differs for the automated and manual production alternatives in the hammock-manufacturing example. The Meeper line for the automated production alternative means that EBITDA for this alternative is more sensitive to changes in the number of units soldStep by Step Solution
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