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The Quarles Distributing Company manufactures an assortment ofcold air intake systems for? high-performance engines. The averageselling price for the various units is ?$700. The associatedvariable cost is ?$250 per unit. Fixed costs for the firm average $180,000 annually.a. What is the? break-even point in units for the? company?b. What is the dollar sales volume the firm must achieve toreach the? break-even point?c. What is the degree of operating leverage for a production andsales level of 4,000 units for the? firm? (Calculate to threedecimal? places.)d. What will be the projected effect on earnings before interestand taxes if the? firm's sales level should increase by 45 percentfrom the volume noted in part ?(c?)?
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