U.S. Steal has the following income statement data:

a. Compute DOL based on the following formula:

b. Confirm that your answer to part a is correct by recomputing DOL using Formula 5€“3. 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.

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Total Operating Variable Fixed Total Income Units Total Costs Costs Revenue Sold Costs (Loss) 60,000 $ 120,000 $50,000 $170,000 $360,000 S190,000 80,000 480,000 160,000 50,000 210,000 270,000