Question: U.S. Steal has the following income statement data Total Variable Costs Operating Income (Loss) Fixed Costs S 20,000 20,000 Total Costs Units Sold 15,000 $

U.S. Steal has the following income statement data Total Variable Costs

U.S. Steal has the following income statement data Total Variable Costs Operating Income (Loss) Fixed Costs S 20,000 20,000 Total Costs Units Sold 15,000 $ 45,000 35.000 Total $ 65,000 S 120,000 280,000 S 55,000 105,000 125,000 155,000 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.) DOL Percent change in operating income Percent change in units sold Degree of operating 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.) 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 Degree of operating

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