Pricher Corporation's income statement for last year appears below:

Sales ..........................................................$2,000,000

Cost of goods sold:

Direct materials ...................................... $500,000

Direct labor (variable) ............................ 150,000

Variable manufacturing overhead .......... 50,000

Fixed manufacturing overhead ............... 600,0001,300,000

Gross margin .............................................700,000

Selling and administrative expenses:

Variable .................................................. 100,000

Fixed ....................................................... 300,000400,000

Net operating income ................................ $300,000

a. The break-even point last year was:-----------------------

b. The degree of operating leverage last year was------------------------