Break-even Analysis

A manufacturing company has fixed costs of $200,000 and variable costs of $25 per unit. The selling price per unit is $50.

Requirements: (a) Calculate the break-even point in units. (b) Calculate the break-even point in dollars. (c) If the company wants to achieve a profit of $100,000, how many units must it sell? (d) Calculate the margin of safety if the company sells 10,000 units. (e) Determine the operating leverage at the break-even point.