15-13A. (Break-even point and operating leverage) Allison Radios manufactures a complete line 01'

radio and communication equipment for law enforcement agencies. The average selling price of its finished product is $180 per unit. The variable cost for these same units is $126. Allison Radios incurs fixed costs of $540,000 per year.

a.ı What is the break-even point in units for the company? c b.ı What is the dollar sales volume the finn must achieve in order to reach the break~\tll point?

c.ı What would be the firm's profit or loss at the following units of production sold:

12,000 units? 15,000 units? 20,000 units?

d.ı Find the degree of operating leverage for the production and sales levels given in part (c~