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

a. Compute DOL based on the following formula (see page 131 for an example):

b. Confirm that your answer to part a is correct by recomputing DOL using Formulae. There may be a slight difference due to rounding.

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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Units Sold 60,000 80,000 Total Variable Costs $120,000 160,000 Fixed Costs $50,000 50,000 Total Costs $170,000 210,000 Total Revenue $360,000 480,000 Operating Income (Loss) $190,000 270,000