Macro Soft Ltd. is a giant software developer company based in KL. The company is considering an expansion of its operation in the next year which involves a fixed cost of totaling $120,000. The sales price of the companys product is $150 per unit while the variable cost is $126 per unit. For the expansion, the company is planning to purchase a new machine which will increase the fixed cost. However, the new machine will reduce the variable cost to $120 per unit.

a. Calculate the companys break-even point before purchasing the new machine.

b. How much can the fixed cost be increased to keep the companys break-even point unchanged?

c. Based on the new level of fixed cost, the company predicts that it can sell 13,000 units of product in the next year. Calculate the companys DOL at this level of sales.