Cost-Volume-Profit Analysis at General Electric

Values:

• Selling Price per Unit: $100,000
• Variable Cost per Unit: $80,000
• Fixed Costs: $15,000,000

Requirements:

1. Calculate the break-even point in units.
2. Determine the sales volume needed to achieve a profit of $4,000,000.
3. Analyze how changes in fixed costs impact the break-even point.
4. Recommend strategies to improve profitability.