The Joffre Company has the following cost function for one of its products:

Fixed costs = $500,000 Variable cost per unit = $36 Selling price per unit = $41 A. Compute the operating profit or loss at the following levels of output:

a. 0 units

b. 50,000 units

c. 150,000 units

d. 1,000,000 units.

B. Compute the volume at the break-even point.

C. Compute the volume needed to achieve an operating profit =

$2,000,000.

D. Compute the operating leverage effect at a volume of 1,000,000 units.