Cvp analysis-academic approach

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(Break-even point and operating leverage) Avitar Corporation manufactures the line of computer memory expansion boards employed in microcomputers. The average selling price of its finished product is $175 per unit. The variable cost for these same units is $115. Avitar incurs fixed costs of $650,000 per year.

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 would be the firm's profit or loss at the following units of production sold: 10,000 units? 16,000 units? 20,000 units?
d. Find the degree of operating leverage for the production and sales levels given in part (c).

Reference no: EM1347354

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