Question: U.S. Steal has the following income statement data: Total Variable Costs $ 135,000 195,000 Units Sold 45,000 65,000 DOL = Fixed Costs $50,000 50,000 Degree

U.S. Steal has the following income statement data: Total Variable Costs $ 135,000 195,000 Units Sold 45,000 65,000 DOL = Fixed Costs $50,000 50,000 Degree of operating leverage DOL = 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.) Percent change in operating income Percent change in units sold Total Costs $ 185,000 245,000 Q(PVC) Q(PVC) - FC Total Revenue $ 270,000 390,000 Operating Income 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.) Degree of operating leverage (Loss) $ 85,000 145,000 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.

U.S. Steal has the following income statement data: 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=PercentchangeinunitssoldPercentchangeinoperatingincome 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.) DOL=Q(PVC)FCQ(PVC) 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

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