Q1. Bamboo manufacturing sells its finished product for an average of $35 per unit with a variable cost per unit of $21. The company has fixed operating costs of $1,050,000.

(a) Calculate the firm's operating breakeven point in units.

(b) Calculate the firm's operating breakeven point in dollars.

(c) Using 100,000 units as a base, what is the firm's degree of operating leverage?

Q2. Assuming a 40 percent tax rate, what is the financial breakeven point for each plan? (See Table 1)

Table 1

	Plan 1	Plan 2
Interest Paid	$25,000	$50,000
Preferred Divdend	$3,000	$1,500
Common Shares Outstanding	200,000	100,000