Calculate Dol solution general accounting question Given the following income statement for Matrix Electronics Company, compute the degreeof operating leverage (DOL):MATRIX ELECTRONICS COMPANYIncome StatementFor The Year Ended December 31, 2022ParticularsSales (25,000 units @ $120)Amount ($)$3,000,000Less: Variable costs (25,000 units @ $72) (1,800,000)Contribution Margin$1,200,000Less: Fixed costs(450,000)EBIT$750,000Less: Interest expense(75,000)EBT$675,000Less: Income tax expense (30%)(202,500)EAT$472,500Calculate the Degree of Operating Leverage (DOL)

Step 1: Definition of Degree of Operating Leverage (DOL)The Degree of Operating Leverage (DOL)…

Answered: Given the following income statement…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 16E

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