15-6B. (Break-even point and profit margin) A recent graduate of Neeley University is planning to open a new wholesaling operation. Her target operating profit margin is 28 percent. Her unit con·

tribution margin will be 45 percent ofsales. Average annual sales are forecast to be $3,750,000.

a.ı How large can fixed costs be for the wholesaling operation and still allow the 28 percent operating profit margin to be achieved?

b.ı What is the break-even point in dollars for the firm?