Question
For a sales level of 3,000,000; X Corp has DOL of 2x, DTL of 3x and CM ratio is 60%. Compute the Fixed cost. 2.
For a sales level of 3,000,000; X Corp has DOL of 2x, DTL of 3x and CM ratio is 60%. Compute the Fixed cost.
2. The following data are available for X Company:
• Ave Selling price of 16 per unit
• Variable cost per unit of 11
• Units sold is 200,000
• Fixed cost is 800,000
• Interest expense is 50,000
What is the DFL (Degree of Financial Leverage)?
Step by Step Solution
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2 2 To compute the fixed cost for X Corp we can use the formula for degree of operating leverage DOL ...
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Cost Accounting A Managerial Emphasis
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
6th Canadian edition
978-0132893534, 9780133389401, 132893533, 133389405, 978-0133392883
