Please provide the correct answer to this general accounting problem using valid calculations. The following data is provided for Alpha Industries Inc.:⚫ Sales: $2,500,000••Variable Costs: $1,200,000Fixed Costs: $500,000EBIT (Earnings Before Interest and Taxes): $800,000Calculate the Degree of Operating Leverage (DOL) at the current sales level.

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

Answered: The following data is provided for…

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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The following data is provided for Alpha Industries Inc.: ⚫ Sales: $2,500,000 • • Variable Costs: $1,200,000 Fixed Costs: $500,000 EBIT (Earnings Before Interest and Taxes): $800,000 Calculate the Degree of Operating Leverage (DOL) at the current sales level.