In solving the exercises below, round all the dollar figures to TWO DECIMAL POINTS. 12-5

The Penguin Company manufactures an assortment of the cold air intake systems. The average selling price for the various units is $150. The associated variable cost is $100 per unit. The fixed costs for the firm average $40,000 annually. a What is the break-even point in units for the company? b. What is the dollar sales volume that the firm must achieve to reach the break-even point? c. What is the degree of operating leverage for a sales level of 2,000 units? d. What is the effect on EBIT, if the firm's sales level decreased by 25% from the volume noted in part (c)