Question: 1. Gateway toasted cheese has an average spend per customer of $20. The variable cost per customer is $15. Gateway estimates that the fixed costs

1. Gateway toasted cheese has an average spend per customer of $20. The variable cost per customer is $15. Gateway estimates that the fixed costs are $80,000.

a. Compute the break-even point in units.

b. What is the DOL at 50,000 units sold?

c. By how much (in $) will the operating profit change if the units sold increase by 12% from the 50,000 level?

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