A company sells a single product with the following details:

• Selling price per unit: $40
• Variable cost per unit: $25
• Fixed costs: $75,000

Requirements:

1. Calculate the contribution margin per unit.
2. Determine the contribution margin ratio.
3. Compute the break-even point in units.
4. If the company wants to achieve a target profit of $30,000, how many units must it sell?
5. Calculate the operating leverage at the break-even point.