Calculate the break even revenue and the break even units based on the following information....
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Finance
Calculate the break even revenue and the break even units based on the following information. 1. The cost of developing the Trinova is forecast at $900 million, and this investment can be depreciated in 6 equal annual amounts. 2. Production of the plane is expected to take place at a steady annual rate over the following 6 years. 3. The average price of the Trinova is expected to be $15.5 million. 4. Fixed costs are forecast at $175 million a year. 5. Variable costs are forecast at $8.5 million a plane. 6. The tax rate is 50%. 7. The cost of capital is 10%.
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