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​(​Break-even point and operating leverage​)​ Rockstar, Inc. manufactures a complete line of​ men's and​ women's casual...

​(​Break-even point and operating leverage​)​ Rockstar, Inc. manufactures a complete line of​ men's and​ women's casual shoes for independent merchants. The average selling price of its finished product is ​$90 per pair. The variable cost for this same pair of shoes is ​$55. Footwear Inc. incurs fixed costs of ​$180 comma 000 per year.

a. What is the​ break-even point in pairs of shoes sold 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 operating profit or loss​ (that is, net operating​ income) at the following units of production​ sold: 5 comma 000 pairs of​ shoes? 10 comma 000 pairs of​ shoes? 17 comma 000 pairs of​ shoes?

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