Assume that Boieng annual fixed costsare $950 million, and its variable cost per plain is $45 million. 1. Compute Boing Break-even point in number of plains and in dollars of sales. 2. Suppose Boing sells 42 plains. Compute projected operating income.3. Suppose Boeing increases its fixed costs by $84 Million and reduces variable costs by $2 million per plain. Compute operating profit if 42 plains are sold. Compute break-even point. Comment your results. 4. Ignore requierment 3. Suppose fixed costs do not change, but variable costs increase by 10%. Compute the new break-even point. What strategies might Boing use to help assure profitable operations in light of increases in variable costs?
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