Determine the break-even output of the firm

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Compute the break-even output, total sales revenues, and operating leverage of a firm. Directions:

1. Determine the break-even output of the firm.

2. Determine the total sales revenues of the firm.

3. Determine the output that would generate a total profit of $60,000.

4. Determine the firm's operating leverage

5. What conclusions can be made regarding the firm with the figures that have been produced?

Note: You do not need to draw the cost-volume-profit chart.

Reference no: EM13505666

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