The Scott Sax Company provides you with the following income statement for the year ending December 31, 2016:

Scott Sax Company Income Statement for year-end December 31, 2016
Sales ($100 per unit)	500,000
Variable costs ($40 per unit)	200,000
Fixed Costs (includes depreciation of $50,000)	200,000
EBIT	100,000
Interest Expense	10,000
EBT	90,000
Tax expense (30%)	27,000
Net Income	63,000
Shares of Common Stock	15,000
EPS	$ 4.20

Required:

Given the information above:

1. How many units are required for the company to reach its accounting breakeven point? How many units are required for cash breakeven?

2. Calculate the Companys Degree of Operating Leverage (DOL) based on its 2016 sales volume.

3. The Company expects sales to grow by 10 percent for year 2017. Explain the effect of operating leverage on this number.