Sunshine Company sells a single model of sunglasses which has a selling price of $20 per sunglass with a variable cost of $12 per unit. The companys fixed expense is $15,000 per month.

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What is the break-even (BEP) point in units?

2 points

What is the break-even (BEP) point in sales dollars?

1 point

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What is the contribution margin (CM) ratio?

2 points

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Find the number of units that have to be sold to earn a profit of $40,000.

2 points

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What is the profit/loss at a sales level of 5,000 units?

2 points

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What is the degree of operating leverage at 5,000 units?