1. What is AA's degree of operating leverage? (use the table to answer the question)

2. What is AA's degree of financial leverage? It looks like this is what led to Delta's financial struggles.

3. What is the combined leverage?

Select Year to Date Financial Figures Tickets Sold YTD: 10,000,000 airline tickets Formulas that may be used in this chapter. Contribution margin =PVC Break-even = FC / Contribution margin Degree of Operating Leverage (DOL) DOL= percent change in operating income / percent change in unit volume DOL=Q(PVC)/Q(PVC)FC Degree of Financial Leverage (DFL) DFL= percent change in EPS / percent change in EBIT DFL=EBIT/(EBITI) Degree of Combined Leverage (DCL) DCL= percent change in EPS / percent change in sales (or volume) DCL=Q(PVC)/Q(PVC)FC F Formulas Break-even Analysis Details \begin{tabular}{|c|r|} \hline & Dollars $ \\ \hline Fixed Costs & $1,575,000,000 \\ \hline & \\ \hline Price per unit & $609 \\ \hline Variable Cost per unit & $204 \\ \hline \end{tabular}