17. Nelson Company had the following functional income statement for the month of May, 2017: $300,000 NELSON COMPANY Functional Income Statement For the Month Ending May 31, 2017 Sales (30,000 units) Cost of goods sold: Direct materials $30,000 Direct labor 22,500 Variable manufacturing overhead 18,750 Fixed factory overhead 20,000 Gross profit Selling and administrative expenses: Variable $ 3,750 Fixed 10,000 Net income 91,250 $208,750 13,750 $195.000 Calculate Nelson's break-even sales in units. 18. Brown sells tiling grout and reports the following data: Kilograms produced and sold Sales revenue Variable manufacturing expense Fixed manufacturing expense Variable selling and administrative expense Fixed selling and administrative expense Net operating income 625,000 kg $5,625,000 1,875,000 1,000,500 625,000 562,000 $ 1,562,500 Calculate the company's operating leverage if sales decrease by 10%