Widget Corp manufactures widgets and estimates their demand to have a distribution

N (40,000, 5000)

The fixed costs are as follows: manufacturing 120,000, marketing 50,000 and distribution 30,000. The average price of widget is $20 and the unit variable cost is $12.

a)What is the BE point? (1 point)

b)What is the Operating leverage with the mean demand(1 point)

c)What is the margin of safety with the mean demand(1 point)

d)What is the expected profit (1 point)

e)What is the standard deviation of profit(1 point)

f)What is the probability of Break-even (2 points)

g)From the above numbers, comment about the firm's business risk. (2 points)