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

Fixed costs = $2,700,000 Variable cost per unit = $91 Selling price per unit = $100 A. Compute the operating profit or loss at the following levels of output:

a. 0 units

b. 150,000 units

c. 250,000 units

d. 400,000 units

e. 1,000,000 units.
B. Compute the volume at the break-even point.
C. Compute the volume needed to achieve an operating profit = $9,000,000.
D. Compute the operating leverage effect at a volume of 400,000 units.