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Break-even point for an airplane manufacturing company

Assume that a commercial airplane manufacturing company's annual fixed costs for the widebody passenger jet are $1,425 million, and its variable cost per airplane is $90 million. The price for a 240-passenger plane with a range up to 4,010 miles is about $105 million per plane.

Compute the company's break-even point in number of widebody passenger jets and in dollars of sales.

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Assume that a commercial airplane manufacturing company's annual fixed costs for the widebody passenger jet are $1,425 million, and its variable cost per airplane is ...

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Solution explains about break-even point

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