Fixe… Show more U.S. Steal has the following income statem

Assignment Help Finance Fixe… Show more U.S. Steal has the following income statem

Finance

Fixe… Show more U.S. Steal has the following income statem

Fixe… Show more U.S. Steal has the following income statement data: Units sold Total variable costs Fixed costs Total costs Total revenue Operating income (Loss) 115,000 $ 460,000 $ 100,000 $ 560,000 $ 690,000 $ 130,000 135,000 540,000 100,000 640,000 810,000 170,000 (a) Compute DOL based on the formula below. The top row shows the beginning values for each item. (Round your intermediate calculations to the nearest whole number and final answer to 2 decimal places.) DOL = Percent change in operating income DOL = Percent change in units sold Degree of operating leverage (b) Recompute DOL using the formula given below. There may be a slight difference due to rounding. (Round your answer to 2 decimal places.) DOL = Q(P ? VC) DOL = Q(P ? VC) ? FC Q represents beginning units sold (all calculations should be done at this level). P can be found by dividing total revenue by units sold. VC can be found by dividing total variable costs by units sold. Degree of operating leverage • Show less

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