accounting question The degree of pretax cash flow operating leverage (DOL) at Cyclone Bikes Ltd. is 3.2 when itsells 80,000 units of its new electric bicycle. The company's EBITDA at this level is $120,000.Ignoring the effects of taxes, what are Cyclone Bikes' fixed costs?

To find Cyclone Bikes' fixed costs using the degree of operating leverage (DOL), we use the…

Answered: The degree of pretax cash flow…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 16E

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The degree of pretax cash flow operating leverage (DOL) at Cyclone Bikes Ltd. is 3.2 when it sells 80,000 units of its new electric bicycle. The company's EBITDA at this level is $120,000. Ignoring the effects of taxes, what are Cyclone Bikes' fixed costs?