U.S. Steal has the following income statement data: Units Sold Total Variable Costs Fixed Costs Total Costs Total Revenue Operating Income (Loss) 100,000 $ 300,000 $ 90,000 $ 390,000 $ 600,000 $ 210,000 120,000 360,000 90,000 450,000 720,000 270,000 The top row of the table has the beginning values and the bottom row of the table has the ending values. a. Compute the degree of operating leverage (DOL) based on the formula below. (Do not round intermediate calculations. Round your final answer to 2 decimal places. Calculate Degree of Operating levarege? b. Recompute DOL using the formula given below. There may be a slight difference due to rounding. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Calculate Degree of Operating levarege?
U.S. Steal has the following income statement data: Units Sold Total Variable Costs Fixed Costs Total Costs Total Revenue Operating Income (Loss) 100,000 $ 300,000 $ 90,000 $ 390,000 $ 600,000 $ 210,000 120,000 360,000 90,000 450,000 720,000 270,000 The top row of the table has the beginning values and the bottom row of the table has the ending values. a. Compute the degree of operating leverage (DOL) based on the formula below. (Do not round intermediate calculations. Round your final answer to 2 decimal places. Calculate Degree of Operating levarege? b. Recompute DOL using the formula given below. There may be a slight difference due to rounding. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Calculate Degree of Operating levarege?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
U.S. Steal has the following income statement data:
| Units Sold |
Total Variable Costs |
Fixed Costs |
Total Costs |
Total Revenue |
Operating Income (Loss) |
||||||||||
| 100,000 | $ | 300,000 | $ | 90,000 | $ | 390,000 | $ | 600,000 | $ | 210,000 | |||||
| 120,000 | 360,000 | 90,000 | 450,000 | 720,000 | 270,000 | ||||||||||
The top row of the table has the beginning values and the bottom row of the table has the ending values.
a. Compute the degree of operating leverage (DOL) based on the formula below. (Do not round intermediate calculations. Round your final answer to 2 decimal places.
Calculate Degree of Operating levarege?
b. Recompute DOL using the formula given below. There may be a slight difference due to rounding. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Calculate Degree of Operating levarege?
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