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Break-Even Analysis [LO3] In an effort to capture the large jet market, Airbus invested $13 billion developing its A380, which is capable of carrying 800 passengers. The plane has a list price of $280 million. In discussing the plane, Airbus stated that the company would break even when 249 A380s were sold.
a. Assuming the break-even sales figure given is the cash flow break-even, what is the cash flow per plane?
b. Airbus promised its shareholders a 20 percent
c. Suppose instead that the sales of the A380 last for only 10 years. How many planes must Airbus sell per year to deliver the same rate of return?
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