For a sales level of 3,000,000; X Corp has DOL of 2x, DTL of 3x and CM ratio is 60%. Compute the Fixed cost.

 

2. The following data are available for X Company:

•                 Ave Selling price of 16 per unit

•                 Variable cost per unit of 11

•                 Units sold is 200,000

•                 Fixed cost is 800,000

•                 Interest expense is 50,000

What is the DFL (Degree of Financial Leverage)?

Answer rating: 100% (QA)

2 2 To compute the fixed cost for X Corp we can use the formula for degree of operating leverage DOL ... View the full answer