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View Full Version : How to calculate a firms operating breakeven point in dollars


Lucillie Wall
Nov 12, 2012, 08:14 PM
Lyman Manufacturing sells its finished product for an average of $46 per unit with a variable cost per unit of $23. The company has fixed operating costs of $2,075,000.

Calculate the firm's operating breakeven point in units

Calculate the firm's operating breakeven point in dollars

Assuming 100,000 units as a base, what is the firm's degree of operating leverage?