IS-JR. (Break-even point and ope1'ating Leverage) Avitar Corporation manufactures a line of computer memory expansion boards used in microcomputers. The average selling price of its finished product is $175 per unit. The variable cost for these same units is $115. Avitar incurs fixed costs of $650,000 per year.

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

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

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

10,000 units? 16,000 units? 20,000 units?

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