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Compute DOL for U.S. Steel I am having trouble trying to figure out how to do this problem....I have looked around the site but the
Compute DOL for U.S. Steel
I am having trouble trying to figure out how to do this problem....I have looked around the site but the answers don't really show the steps I need to figure out this problem.
Units Sold | Total Variable Cost | Fixed Costs | Total Costs | Total Revenue | Operating Income (Loss) |
60,000 | 120,000 | 50,000 | 170,000 | 360,000 | 190,000 |
80,000 | 160,000 | 50,000 | 210,000 | 480,000 | 270,000 |
a.) Compute DOL based on the following formula
DOL=%change in operating income/% change in units sold
b.) confirm that your answer is correct by recomputing DOL using this formula...
DOL=Q(P-VC)/Q(P-VC)-FC
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