$($Operating leverage$)$ The C$.$ M$.$ Quarles Distributing Company manufactures an assortment of cold air intake systems for$$ high$-$performance engines. The average selling price for the various units is $$$$300.$ The associated variable cost is $$$$120$ per unit. Fixed costs for the firm average $ $220,000$ annually.

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

b$.$ What is the dollar sales volume the firm must achieve to reach the$$ break$-$even point?

c$.$ What is the degree of operating leverage for a production and sales level of $5$ comma $000$ units for the$$ firm? $($Calculate to three decimal$$ places.$)$

d$.$ What will be the projected effect on earnings before interest and taxes if the$$ firm's sales level should increase by $20$ percent from the volume noted in part c$?$

Question content area bottom

Part $1$

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

$$

enter your response here units$($Round to the nearest whole$$ number.$)$

Part $2$

b$.$ What is the dollar sales volume the firm must achieve to reach the$$ break$-$even point?

$$$

$$

enter your response here$($Round to the nearest$$ cent.$)$

Part $3$

c$.$ What is the degree of operating leverage for a production and sales level of $5,000$ units for the$$ firm? $($Note that you can compare sales at a$10\%$ higher level $(5,500$units$)$ in detemining the degree of operating$$ leverage.$)$

$$

enter your response here$($Round to three decimal$$ places.$)$

Part $4$

d$.$ What will be the projected percentage change in earnings before interest and taxes if the$$ firm's sales level should increase by $20$ percent from the volume noted in part c$?$

$$

enter your response here$\%($Round to two decimal$$ places.$)$