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The Newcastle Utility Company has fixed costs of $20,000 per month and sells electricity for $0.015 per kilowatt-hour. It costs them $0.005 per kilowatt-hour to

The Newcastle Utility Company has fixed costs of $20,000 per month and sells electricity for $0.015 per kilowatt-hour. It costs them $0.005 per kilowatt-hour to produce the electricity. a) What is Newcastles break-even point? (2,000,000 units per month). b) What is Newcastles DOL at sales level of 2,750,000 kilowatt-hours? (DOL=3.6667)

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