1. A new restaurant is ready to open for business. It is estimated that the food cost (variable cost) will be 10% of sales, while fixed cost will be $450,000. The first years sales estimates are $8. Calculate the firms operating breakeven level of sales.

2. A new restaurant is ready to open for business. It is estimated that the food cost (variable cost) will be 40% of sales, while fixed cost will be $404,361. The first years sales estimates are $1,250,000. Calculate the firms degree of operating leverage (DOL).

3. Maverick Technologies has sales of $3,000,000. The companys fixed operating costs total $527,572 and its variable costs equal 60% of sales. The companys interest expense is $500,000. What is the companys degree of total leverage (DTL)?

4. Maverick Technologies has sales of $3,000,000. The companys fixed operating costs total $500,000 and its variable costs equal 60% of sales, so the companys current operating income is $700,000. The companys interest expense is $477,869. What is the companys degree of financial leverage (DFL)?