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Q. An aircraft manufacturer’s estimates indicate the variable cost of manufacturing a new aircraft will be $150 million...

Q. An aircraft manufacturer’s estimates indicate the variable cost of manufacturing a new aircraft will be $150 million per aircraft. The fixed cost applicable to the new product is estimated to be $24 billion, and the selling price of the aircraft is $190 million per aircraft.

a) Computation of the breakeven point in units, as a percent of capacity in sales dollars.

b) Determine the algebraic statements of the revenue and the cost functions.

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Answer #1

e for A refor the below fomuula, b At BEP, total reveure is equal to total cort TR=TC PQ = Fc tucta PO ev CHa = FC R P-V . Q

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