1) The Quarles Distributing Company manufactures an assortment of cold air intake systems forhigh-performance engines. The average selling price for…

1)  The Quarles Distributing Company manufactures an assortment of cold air intake systems for​ high-performance engines. The average selling price for the various units is $600. The associated variable cost is $250 per unit. Fixed costs for the firm average $160,000 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 4,000 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​)?

2)

a.

b.

3)

a.

b.

4)

a.

b.

c.

5)

a.

b.

c.

a

d.

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