(Answered) Calculating the break even point

You are employed as a financial analyst for a single-product manufacturing firm. Your supervisor has made the following cost structure information available to you, all of which pertains to an output level of 1,700,000 units.;Return on operating assets = 16 percent;Operating asset turnover = 6 times;Operating assets = $3.25 million;Degree of operating leverage = 9 times;Your task is to find the break-even point in units of output for the firm.
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Calculating the break even point

 


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