The Fulcrum Company produces decorative swivel platforms for home televisions. If Fulcrum produces 40 million units, it estimates that it can sell them for $100 each. The variable production costs are $65 per unit. The fixed production costs, including depreciation and amortization, are $1.05 billion. Which of the following statements is true?

a. The Fulcrum Company produces a positive accounting operating profit (EBIT) if it produces and sells more than 25 million swivel platforms.

b. The Fulcrum Company’s degree of accounting operating leverage is 1.333.

c. If the Fulcrum Company increases production and sales by 5 percent, its operating earnings are expected to increase by 20 percent.

d. Increasing the fixed production costs by 10 percent will result in a lower sensitivity of operating earnings to changes in units produced and sold.