Posted: March 30th, 2016

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

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