Question: Harmony sells a product for $50 per unit. Variable costs per unit are $30, and monthly fixed costs are $150,000. Answer the following questions: a.

Harmony sells a product for $50 per unit. Variable costs per unit are $30, and monthly fixed costs are $150,000. Answer the following questions:

a. What is the break-even point in units?

b. What unit sales would be required to earn a target profit of $100,000?

c. Assume they achieve the level of sales required in part b, what is the degree of operating leverage?

d. If sales increase by 40% from that level, by what percentage will profits increase?

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