You are an analyst working in a single-product


You are an analyst working in a single-product manufacturing firm. You have developed your firms cost structure below, based on an output level of 10 million units. Based upon your analysis, what is the breakeven number of units for the firm.

Return on operating assets               30%

Operating asset turnover                  6 times

Operating assets                                $20 million

Degree of operating leverage             4.5 times

 

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Finance Basics: You are an analyst working in a single-product
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