Homework Help: accounting/ Finance

Posted by Denim on Monday, April 20, 2009 at 3:02pm.

Break-even point. Please help me understand how to get the fixed and variable cost in order to determine the break-even point in units of output for the following:

Output level 10 million

Return on operating assets= 25%
Operating asset turnover= 5 times
Operating asset =$20 million
Degree of operating leverage= 4 times

Help??? I just cant get it.. I need to understand in order to answer the rest of the questions. Thanks in advance

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