Stuart Company manufactures a single product. Each unit sells for $15. The firm's projected costs are listed below:

Variable costs per unit:

Production

$5

SG&A

$1

Fixed costs:

Production

$40,000

SG&A

$60,000

Estimated volume

20,000 units

a) What is Stuart's projected margin of safety for the current year?

b) What is Stuart's projected degree of operating leverage for the current year?