12-5.(Operating leverage) Rocky Mount Metals Company manufactures an assortment of wood-burning stoves. The average selling price for the various units is $500. The associated variable cost is $350 per unit. Fixed costs for the firm average $180,000 annually.

• a. What is the break-even point in units for the company?
• b. What is the dollar sales volume the firm must achieve to reach the break-even point?
• c. What is the degree of operating leverage for a production and sales level of 5,000 units for the firm? (Calculate to three decimal places.)
• d. What will be the projected effect on earnings before interest and taxes if the firm