using the operating leverage equation. sales revenue less fixed operating cost less variable operating cost = EBIT.

EBIT as sales move from the base to the other sales levels used in part b? d. Use the percentages computed in part c to determine the degree of operating leverage (DOL). e. Use the formula for degree of operating leverage to determine the DOL at 10,000 units. P13-10 Degree of operating leverage: Graphical Levin Corporation has fixed operating costs of $72,000, variable operating costs of $6.75 per unit, and a selling price of $9.75 per unit. a. Calculate the operating breakeven point in units. b. Compute the degree of operating leverage (DOL) using the following unit sales levels as a base: 25,000, 30,000, 40,000. Use the formula given in the text. c. Graph the DOL figures that you computed in part b (on the y-axis) against base sales levels (on the x-axis). d. Compute the degree of operating leverage at 24,000 units; add this point to your graph. e. What principle do your graph and figures illustrate? P13-11 EPS calculations Southland Industries has $60,000 of 6% (annual interest) bonds outstanding, 1,500 shares of preferred stock paying an annual dividend of $5 per