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Essay

Boeing-Breakeven Analysis

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Issue:

Business

 

Written by:

Floyd H

 

Date added:

October 25, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

2 / 293

 

Was viewed:

6943 times

 

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Essay content:

The fictitious information was used only because Boeing didn’t provide a breakdown of costs per program. Let’s assume that Boeing's annual fixed cost for the 737-900ER are $980 million, and its variable cost per airplane is $65 million. In order to calculate the break even point, the contribution margin for each plane must first be calculated as follows (Note: Assuming the price of the plane is $89,000,000): 1...
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In order to calculate the break even point, the contribution margin for each plane must first be calculated as follows (Note: Assuming the price of the plane is $89,000,000): 1. Sales price - Variable cost per plane: 89-65=24 million Next, since the total fixed cost is given, the break even point can be calculated...
displayed 300 characters

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