Vargo industries has computed its breakeven level of output, Financial Management

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Vargo industries has computed its breakeven level of output

Vargo Industries has computed its breakeven level of output to be 25,000 units. Based on forecasts from its sales force and past experience, expected unit sales are 32,000, with a standard deviation of 5,200.

What is the probability that Vargo will have operating losses? Assume that sales are normally distributed.

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Financial Management: Vargo industries has computed its breakeven level of output

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Financial Management: Vargo industries has computed its breakeven level of output

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