P$1215$ Integrative: Multiple leverage measures Play$-$More Toys produces inflatable beach balls, selling $400,000$ balls per year. Each ball produced has a variable operating Long$-$Term Financial Decisions cost of $$0\mathrm{.}84$ and sells for $$1\mathrm{.}00.$ Fixed operating costs are $$28,000.$ The firm has annual interest charges of $$6,000,$ preferred dividends of $$2,000,$ and a $21\%$ tax rate.

a$.$ Calculate the operating breakeven point in units.

b$.$ Use the degree of operating leverage $($DOL$)$ formula to calculate DOL.

c$.$ Use the degree of financial leverage $($DFL$)$ formula to calculate DFL$.$

d$.$Use the degree of total leverage $($DTL$)$ formula to calculate DTL$.$ Compare this answer with the product of DOL and DFL calculated in parts b and c$.$