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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
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 Vase 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. Tool tip: mouse over the points in the graph to see their coordinates. 2 1000 900 Operating Costs 800 700 600 Sales Revenue Ravenues and Costs (Milions of Dollars) 500 400 Break-even Point 300 0 200 100 0 10 90 100 20 30 40 50 60 70 80 Units Produced and Sold (Millions) Assume that the actual sales for the current period equal 30 million units. Considering your operating break-even analysis, will Vase Co. be profitable at this level of sales? Yes No Not enough information given
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