Question 3: 5 points Chapter 12 The Colombo Corporation manufactures air conditioners for the elevators in the high-rise residential buildings. In the current financial year, the company has managed to sell 4,000 units, whose average selling price is $34. The associated variable cost is $14 per unit, while the fixed costs for the firm average $55,000 per annum. The annual interest expense for obtaining the firm's debt financing amounts to $11,000 per year. The applicable corporate tax rate is 25%. (0.5 points) Estimate the EBIT break-even point in the number of units for the company. BEP(UNITS)= FIXED COST / PRICE PER UNIT - VARIABLE COST PER UNIT -55,000/34-14-2750 UNITS (0.5 points) Calculate the EBIT break-even point in the dollar sales volume for the company. SALES-BEP*PRICE PER UNIT-2750*34=$93500 e. Compute the firm's financial leverage AND interpret its meaning. f. Compute the firm's combined leverage AND interpret its meaning. Find the new level of the firm's net income, if its sales level had decreased by 15%