A firm’s product sells for $12 per unit. The unit variable cost
is $8. The operating fixed costs total $100,000 per year. The firm
pays $20,000 interest and $3,000 preferred dividends each year. The
tax rate for this firm is 40%.
1. What is the firm’s operating breakeven point (rounded to the
whole unit)? Select one:
a. 25,000 units
b. 30,000 units
c. 45,000 units
d. 50,000 units
e. None of the above
2. What is the DOL at 50,000...