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Contribution margin =PVC Break-even =FC/ Contribution margin Degree of Operating Leverage (DOL) DOL = percent change in operating income / percent change in unit volume

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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/(EBIT1) Degree of Combined Leverage (DCL) DCL= percent change in EPS/ percent change in sales (or volume) DCL=Q(PVC)/Q(PVC)FC R \begin{tabular}{|c|r|} \hline & \multicolumn{1}{|c|}{ Dollars $} \\ \hline Fixed Costs & $1,575,000,000 \\ \hline & \\ \hline Price per unit & $615 \\ \hline Variable Cost per unit & $208 \\ \hline \end{tabular} Correct! The solution is: $615208=$407 Calculate the break-even point in units. (You can toggle back to the graph if needed.) 3,869,7793,637,592

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