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(Operating leverage) The Quarles Distributing Company manufactures an assortment of cold air intake systems for high-performance engines. The average selling price for the various units

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(Operating leverage) The Quarles Distributing Company manufactures an assortment of cold air intake systems for high-performance engines. The average selling price for the various units is The associated variable cost is $250 per unit. Fixed costs for the firm average $170,000 annually. 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 point? c. What is the degree of operating leverage for a production and sales level of 3,000 units for the firm? (Calculate to three decimal places.) d. What will be the projected effect on earnings before interest and taxes if the fim's sales level should increase by 30 percent from the volume noted in part (c)? a. What is the break-even point in units for the company? units (Round to the nearest whole number.) b. What is the dollar sales volume the firm must achieve to reach the break-even point? (Round to the nearest cent.) c. What is the degree of operating leverage for a production and sales level of 3,000 units for the r ? Note of operating leverage at you can compare sa esat a 10% higher e el 300 units n i mining he degree (Round to three decimal places.) d. What will be the projected percentage change in earnings before interest and taxes if the firm's sales level should increase by 30 percent from the volume noted in part (c)? (Round to two decimal places.)

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