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?(Operating leverage?) The Quarles Distributing Company manufactures an assortment of cold air intake systems for? high-performance engines....

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Finance

?(Operating leverage?) The Quarles Distributing Companymanufactures an assortment of cold air intake systems for?high-performance engines. The average selling price for the variousunits is ?$600 . The associated variable cost is ?$400 per unit.Fixed costs for the firm average $ 190 comma 000 annually. a. Whatis the? break-even point in units for the? company? b. What is thedollar sales volume the firm must achieve to reach the? break-evenpoint? c. What is the degree of operating leverage for a productionand sales level of 5 comma 000 units for the? firm? (Calculate tothree decimal? places.) d. What will be the projected effect onearnings before interest and taxes if the? firm's sales levelshould increase by 50 percent from the volume noted in part?(c?)?

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