The C&D TV store currently has fixed costs of $6,000 per month and $400 per TV set. Their sales price for the TV sets is $700 each, and their current volume is 25 sets per month.

a) Find C&Ds break-even point and their NOI and DOL at the current level of sales (20 units per month, NOI=$1,500, and DOL=5).

b) Find C&Ds break-even point and their NOI and DOL if fixed costs decrease to $4,750 and at the same time the cost of TV sets rises to $450 (19 units per month, NOI=$1,500, and DOL=4.1667).