Question: The current price per unit for shock absorbers produced by Leveland Products is $25. The variable cost per unit is $10. Fixed costs are $600,000.

The current price per unit for shock absorbers produced by Leveland Products is $25. The variable cost per unit is $10. Fixed costs are $600,000.
a. What is the breakeven point in units?
b. What is the DOL at the breakeven point? Explain what this value means conceptually.

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