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  1. business
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  3. your company is considering altering its operation

Your company is considering altering its operations going forward but is unsure about how this...

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Finance

Your company is considering altering its operations going forward but is unsure about how this should happen. Youve decided to take it upon yourself to complete an operating break-even analysis for the company. Use the information in the table to complete the operating break-even graph that follows. Operational Information for Wine Co. Selling price per unit $15 Variable cost per unit $5 Fixed operating costs $350 million Use the graph to determine the sales revenue and operating costs at various levels of production, as well as the operating break-even point. Tool tip: Mouse over the points in the graph to see their coordinates. Break-even Point Operating Costs Sales Revenues 0 20 40 60 80 100 1000 800 600 400 200 0 REVENUES AND COSTS (Millions of dollars) UNITS PRODUCED AND SOLD (Millions) Assume that the actual sales for the current period equal 30 million units. Considering your operating break-even analysis, will Wine Co. be profitable at this level of sales? Not enough information given Yes No

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