• Calculate the degree of operating leverage for ABC Corporation using the following data:

  Sales ($)	Variable Costs ($)	Fixed Costs ($)	Earnings Before Interest and Taxes (EBIT) ($)
  $200,000	$100,000	$50,000	$50,000

  Requirements:

  • Determine the degree of operating leverage.
  • Present the calculation in a detailed table format.
  • Discuss the interpretation of DOL in financial analysis.