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    MARENGO1's Avatar
    MARENGO1 Posts: 2, Reputation: 1
    New Member
     
    #1

    Aug 26, 2009, 11:39 AM
    break even point
    You are a hard-working analyst in the office of financial operations for a manufacturing firm that produces a single product. You have developed the following cost structure information for this company. All of it pertains to an output level of 10 million units. Using this information, find the break-even point in units of output for the firm.

    Return on operating assets
    = 25%

    Operating asset turnover
    = 5 times

    Operating assets
    = $20 million

    Degree of operating leverage
    = 4 times
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Aug 26, 2009, 07:34 PM

    A hard-working analysis would have read the big red instructions at the top of the forum first:
    Ask Me Help Desk - Announcements in Forum : Homework Help

    Please always present any of your own work with a post so that someone can see where you're at and guide you from there.

    But a hint. ANY time you have a problem like this involving equations, write down all of your equations first. Then start plotting in what you have, and work your way towards what you don't have. Sometimes one has to be solved to use that answer in another one to solve it. Using your extended equation for ROI, you can get profit margin and sales very quickly. Then go from there.

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