Question: Compute the degree of operating leverage (DOL) based on the formula below DOL = Percent change in operating income / Percent change in units sold

Compute the degree of operating leverage (DOL) based on the formula below DOL = Percent change in operating income / Percent change in units sold Recompute DOL using the formula given below. There may be a slight difference due to rounding DOL = Q(P VC) / Q(P VC) FC Q represents beginning units sold (all calculations should be done at this level). P can be found by dividing total revenue by units sold. VC can be found by dividing total variable costs by units sold.

Units Sold	Total Variable Costs		Fixed Costs		Total Costs		Total Revenue		Operating Income (Loss)
55,000	$	220,000	$	30,000	$	250,000	$	275,000	$	25,000
75,000		300,000		30,000		330,000		375,000		45,000

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