15-9B. (Break-even point and operating leverage) Matthew Electronics manufactures a complete line of radio and communication equipment for law enforcement agencies. The average selling price of its finished product is $175 per unit. The variable costs for these same units is $140.

Matthew's incurs fixed costs of $5 50,000 per year.

a.ı What is the break-even point in units for the company?

b.ı What is the dollar sales volume the firm must achieve to reach the break-even point?

c.ı What would be the firm's profit or loss at the folJowing units of production sold:
12,000 units? 15,000 units? 20,000 units?

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