Total operating revenues	78,000,000
Less expenses	57,000,000
Less Depreciation	9,000,000
Earning before interest and taxes	12,000,000
Less interest	2,000,000
Net income before taxes	10,000,000
Less taxes @ 10%	1,000,000
Net income	9,000,000

BALANCE SHEET
Amount
Assets
Cash	9,000,000
Other current assets	18,000,000
Net fixed assets	40,000,000
Total assets	67,000,000
LIABILITIES AND EQUTTIES
Accounts payable	12,000,000
Long debt	18,000,000
Shareholder equity	37,000,000
Total liabilities and equities	67,000,000

Calculate break even point

Answer rating: 100% (QA)

To calculate the breakeven point we need to determine the level of sales at which the companys total revenues equal its total costs resulting in zero ... View the full answer