1. Can you guess Dell's incremental cost for producing one computer? You probably have that amount in your wallet or purse! Let's estimate the sales break-even point and degree of operating leverage for Dell Computer (DELL). Go to the annual income statement. With reference to Table 10-4, treating S&GA and depreciation expense as our proxy for fixed costs, and costs of goods sold as variable costs, estimate the break-even level of sales for Dell for the last year (annual).