When does a firm achieve its operating break-even point?

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 Port Co.
Selling price per unit	$13
Variable cost per unit	$3
Fixed operating costs	$600 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

Draw graph with operating cost, sales, and break even point

Break-even PointOperating CostsSales Revenues02040608010010008006004002000REVENUES AND COSTS (Millions of dollars)UNITS PRODUCED AND SOLD (Millions)60, 600

Assume that the actual sales for the current period equal 68 million units. Considering your operating break-even analysis, will Port Co. be profitable at this level of sales?

Not enough information given

No

Yes