Problem:
You are employed as a financial analyst for a single-product manufacturing firm. Your supervisor has made the following cost structure information available to you, all of which pertains to an output level of 1,700,000 units.
Return on operating assets = 16 percent
Operating asset turnover = 6 times
Operating assets = $3.25 million
Degree of operating leverage = 9 times
Your task is to find the break-even point in units of output for the firm.