Income statements for Mount Lewis Copy Centers for 2016 and 2017 appear below. Data are in thousands of dollars.

a. Compute and interpret the DOL, DFL, and DCL in 2016. Assume the components of the costs of goods sold (COGS) are all variable costs.

b. Compute and interpret the DOL, DFL, and DCL in 2017. Assume the components of the COGS are all variable costs.

c. Why did these numbers change between 2016 and 2017?

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2016 2017 $21,000 10,500 3,000 2,100 Sales $20,000 10,000 2,500 Cost of goods sold Leases Depreciation EBIT 2,000 $5,500 $5,400 Interest 3,000 3,200 $2,200 EBT Taxes (30%) $2,500 750 660 Net income $1,750 $1,540