The Quarles Distributing Company manufactures an assortment of cold air intake systems forhigh-performance engines. The average selling price for the various units is $500 The associated variable cost is $400 per unit. Fixed costs for the firm average $ 180000 annually.

a. What is the break-even point in units for the company? I think it is 1800.. not to sure

b. What is the dollar sales volume the firm must achieve to reach the break-even point? I think it is 900000

c. What is the degree of operating leverage for a production and sales level of 3000 units for the firm? (Calculate to three decimalplaces.) Note that you can compare sales at a 10% higher level (3300 units) in detemining the degree of operating leverage.

d. What will be the projected effect on earnings before interest and taxes if the firm's sales level should increase by

50 percent from the volume noted in part (c)?