Greetings! I could use some assistance with the following Accounting exercise:

In September 2023, Toffeey Ltd.'s CEO plans to announce that the company will lay off 15% of its staff. The layoff will target salaried workers rather than production line workers.

Required:

A: What effect would these cuts have on Toffeey's breakeven point? Explain.

B: What effect would these cuts have on Toffeey's margin of safety? Explain.

C: What effect would these cuts have on Toffeey's degree of operating leverage? Explain.