15-12A. (Break-even point) You are a hard-working analyst in the office of financial operations for a manufacturing firm that produces a single…

15-12A. (Break-even point) You are a hard-working analyst in the office of financial operationsfor a manufacturing firm that produces a single product. You have developed the following coststructure 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 timesOperating assets $20 millionDegree of operating leverage 4 times15-13A. (Break-even point and operating leverage) Allison Radios manufactures a complete line ofradio and communication equipment for law enforcement agencies. The average selling price ofits finished product is $180 per unit. The variable cost for these same units is $126. AllisonRadios incurs fixed costs of $540,000 per year.a. What is the break-even point in units for the company?b. What is the dollar sales volume the firm must achieve in order to reach the break-evenpoint?c. What would be the firm’s profit or loss at the following units of production sold:12,000 units? 15,000 units? 20,000 units?d. Find the degree of operating leverage for the production and sales levels given in part (c).

Question:15-12A. (Break-even point) You are a hard-working analyst in the office of financial operationsfor a manufacturing firm that produces a single product. You have developed the following…

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