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1. Estimate the average Selling price and average COGS per unit ?
2. Estimate the contribution margin per truck. Please refer to the full set of financials below to identify all "non-cash" and non-recurring charges. Additionally, please be sure to consider both manufacturing and non-manufacturing costs. For example, sales commissions are variable costs relative to revenue, so should you bake in part of the selling expense?
3. What is the "break-even" quantity per truck?
4. What is the Degree of Operating Leverage? Comment on the DOL and how it improved profitability over 2010-2012?
Attachment:- Case Study - Break Even Analysis Paccar Trucks.rar
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