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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
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 Flute Co. Selling price per unit $16 Variable cost per unit $11 Fixed operating costs $150 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 on the graph to see their coordinates. REVENUES AND COSTS IMillions of dollars 1000 Break-even Point 800 Operating costs 600 Sales Revenues 400 200 20 40 UNITS PRODUCED AND SOLD Insi 100 Assume that the actual sales for the current period equal 39 million units. Considering your operating break-even analysis, will Flute Co. be profitable at this level of sales? Yes Not enough information given
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