Exercise $3-6$A Cost structure, risk, and the break$-$even point

Fowler Company produces a product that sells for $$200$ per unit and has a variable cost of $$125$ per unit. Fowler incurs annual fixed costs of $$450,000.$

Required

a$.$ Determine the sales volume in units and dollars required to break even.

b$.$ Calculate the break$-$even point assuming fixed costs increase to $$600,000$

c$.$ Explain how a fixed cost structure affects risk and the break$-$even point.