Compute the break-even output, total sales revenues, and operating leverage of a firm. Directions:
1. Determine the break-even output of the firm.
2. Determine the total sales revenues of the firm.
3. Determine the output that would generate a total profit of $60,000.
4. Determine the firm's operating leverage
5. What conclusions can be made regarding the firm with the figures that have been produced?
Note: You do not need to draw the cost-volume-profit chart.