The following estimates have been prepared for a project under consideration:

Cash fixed costs: $20,000

Depreciation: $10,000

Selling price per unit:$2

Variable cost ratio: 0.75 or 75%

Sales units: 100,000

a. What is the accounting break-even level of sales?

b. What is the degree of operating leverage (DOL)?

c. If sales unit goes up by 20%, what will be the percentage change in the operating profit or EBIT?

(If you're using Excel for providing your answer, you MUST show all the process of deriving the answers.)