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You are employed as a financial analyst for a single-product manufacturing firm. Your supervisor has mad the following cost structure information available to you, all of which pertains to an output level of 1,600,000 units.

Return on operating assets = 15%

Operating asset turnover = 5 times

Operating assets = $3 million

Degree of operating leverage = 8 times

Your task is to find the break-even point in units of the output for the firm

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  • Category:- Basic Finance
  • Reference No.:- M954117

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