1. What does the breakeven point represent? How is BEP computed in dollars? How is BEP computed in units?
2. Identify any two of the underlying assumptions of cost-volume-profit analysis?
3. Explain what information operating leverage provides for decision makers?  

4. Use the information provided for Greenleaves Corporation (GLC) to calculate the degree of operating leverage at a sales level of $750,000.

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GreenLeaves Corporation Projected Income Statement For the year ended Dec. 31, 2021 Sales Revenue (100,000 units) $750,000 Variable Expenses 400,000 Contribution margin Fixed Expenses Net income 350,000 210,000 $140,000 GreenLeaves Corporation Projected Income Statement For the year ended Dec. 31, 2021 Sales Revenue (100,000 units) $750,000 Variable Expenses 400,000 Contribution margin Fixed Expenses Net income 350,000 210,000 $140,000

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