Select Auto Imports is a regional auto dealership that specializes in selling high-end imported luxury automobiles. Select Auto sells both new and used cars. Financial data for the most recent year of operations are as follows:

	New Cars	Used Cars	Total
Revenue	$1,500,000	$500,000	$2,000,000
Variable costs	750,000	200,000	950,000
Contribution Margin	$750,000	$300,000	$1.050,000
Fixed costs			840,000
Profit before costs			$210,000

Required:

a) Assuming the product mix remains constant, what is Select Auto's breakeven point in revenue? At the breakeven point, what is the revenue from new and used autos, respectively?

b) What level of revenue is required to ensure that Select Auto earns a profit of $1,050,000 before taxes in the coming year?What is the revenue from new and used autos, respectively at this level of revenue?

c) What is the operating leverage for the level of revenue found in (b)?