1S-ISB. (Break-even point and profit margin) A recent business graduate of Dewey University is planning to open a new wholesaling operation. His target operating profit margin is 25 percent. His unit contribution margin will be 60 percent of sales. Average annual sales are forecast to be $4,250,00Q;

a.ı How large can fixed costs be for the wholesaling operation and still allow the 25 percent operating profit margin to be achieved?

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