Assume you have just been hired as a business manager of Bernies Pizza Plaza a regional pizza restaurant chain. 2. What is operating leverage, and how does it affect a firm's business risk?

a. Show the operating break-even point if a company has fixed costs of $6,000, a sales price of $25, and variables costs of $14.

b. What is the break-even quantity if the price is increased to $30?

c. What is the break-even point if the price is increased to $30 and costs increase to $16?