Problem:
I need your help on how to discuss the various uses for break-even analysis.
What factors would cause a difference in the use of financial leverage for a utility company and an automobile company?
How do I explain how the break-even point and operating leverage are affected by the choice of manufacturing facilities (labor intensive versus capital intensive).
What does risk taking have to do with the use of operating and financial leverage?
How does the interest rate on new debt influence the use of financial leverage?