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?(Operating leverage?) The Quarles Distributing Company manufactures an assortment of cold air intake systems for? high-performance engines. The average selling price for the various units is ?$600. The associated variable cost is ?$450 per unit. Fixed costs for the firm average $ 200 comma $200,000 annually.
a. What is the? break-even point in units for the? company?
b. What is the dollar sales volume the firm must achieve to reach the? break-even point?
c. What is the degree of operating leverage for a production and sales level of 5 comma 5,000 units for the? firm? (Calculate to three decimal? places.)
d. What will be the projected effect on earnings before interest and taxes if the? firm's sales level should increase by 20 percent from the volume noted in part ?(c?)?
a. What is the? break-even point in units for the? company? Nothing unit (Round to the nearest whole? number.)
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