Review the income statement for LMN Retail for the fiscal year ending December 31, 2023, to evaluate its operating leverage and perform a break-even analysis.

LMN Retail Income Statement	Year Ended December 31, 2023
Revenue
Sales Revenue	$1,200,000
Total Revenue	$1,200,000
Expenses
Cost of Goods Sold	$600,000
Variable Selling Expenses	$150,000
Fixed Operating Expenses	$200,000
Depreciation Expense	$40,000
Interest Expense	$20,000
Income Tax Expense	$80,000
Total Expenses	$1,090,000
Net Income	$110,000

Questions:

1. Determine the break-even point in sales dollars. Discuss its importance in financial planning and decision making.
2. Calculate the degree of operating leverage (DOL) and explain how it affects the company’s profitability with changes in sales volume.