12-5. (Operating leverage) The Quarles Distributing Company manufact sortment of cold air intake systems for high-performance engines. The a ing price for the various units is $600. The associated variable cost 0 Fixed costs for the firm average $200,000 annually. 2 12-9 a sm iona average sell. per 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 be so A de point? c. What is the degree of operating leverage (i.e, the ratio of the percent changein divided by the corresponding percent change in sales) for a production and sales level of 5,000 units for the firm? (Calculate to three decimal places.) $6 m d. What will be the projecte d effect on earnings before interest and taxes if the firm's sales level should increase by 20 percent from the volume noted in part (c)