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.

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