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The company Retinex S.L. manufacturing and selling a certain drug prescribed for the treatment of certain eye diseases, wants to know the sales volume from which they would begin to have profit. The Accounting Department provides the following information: At the current production and sales volume of 220,000 units annually, the company is making a profit of € 550,000. However, when initial production only amounted to 100,000 units, losses were valued at € 50,000. The sale price of the product that has remained constant is 15 €. In addition to the calculation of break even point, you must identify:
1. The degree of operating leverage with which the company operates.
2. The increase in profits that will occur if the production and sale is increased by 10,000 units.
3. The new break-even if the company sees increased their fixed costs in € 48,000 as a result of the implementation of a new technologically advanced process (Production 220,000).
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