Larimore Company sales are DH 560,000. The company has variable costs equal to 40% of sales and total fixed costs of DH 150,000 

Required: 

a) What is the company's break-even point in sales dollars? (Show your workings)

b) Compute the company's net income and operating leverage (rounded to one decimal place) if sales increase by 10%. (Show your workings)

c) Describe the effect on operating leverage as a company's sales increase and it moves further beyond its break-even point.

d) Discuss the impact of the advertising cuts on the company's break-even point and margin of safety.