1. Calculate the contribution margin.

2. Calculate the break-even points in units.

3. What is the company's revenue at the break-even point?

4. What is the company's profit at the break-even point?

Formulas Break-even Analysis Details \begin{tabular}{|c|r|} \hline & Dollars $ \\ \hline Fixed Costs & $1,575,000,000 \\ \hline & \\ \hline Price per unit & $609 \\ \hline Variable Cost per unit & $204 \\ \hline \end{tabular} F Formulas that may be used in this chapter. Contribution margin =PVC Break-even = FC / Contribution margin Degree of Operating Leverage (DOL) DOL= percent change in operating income / percent change in unit volume DOL=Q(PVC)/Q(PVC)FC Degree of Financial Leverage (DFL) DFL= percent change in EPS / percent change in EBIT DFL=EBIT/(EBITI) Degree of Combined Leverage (DCL) DCL= percent change in EPS / percent change in sales (or volume) DCL=Q(PVC)/Q(PVC)FC