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How do I compute the Operating Break-even point in dollars? a111 Verizon 4:15 PM * 26%.0, Expert Q&A A new cafeteria is ready to open

How do I compute the Operating Break-even point in dollars?
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a111 Verizon 4:15 PM * 26%.0, Expert Q&A A new cafeteria is ready to open for business at Florida Hospital Orlando. It is estimated that the food cost (variable cost) will be 40% if sales, while fixed cost will be $540,000. The first year's sales estimates are $1,500,000. The cost of the facility was financed with debt at 4.5%. Interest expense for the first year is expected to be $90,000. A) Compute and interpret the first expected degree of operating leverage 0 1 solution Anonymous 25 minutes later Degree of Leverage portrays how well company'sfoxed cots are ffectively utliced to geme operating noorme in other words, how eetectively firm, Eamng, ore-est and TMiENT) generaned using twed costs incurmes for the penod is evaluaned hough DOL The hherthe DOm higher the company's total oend coies The lower the DOL the lower the company'ssol n Degree of Operating Leverage (DOu) Contribution MarginE Degree of Operating Leverage [DoL)-(Sales vanable Costs (Sales-Vanable costs-Fed oper Degree o' operating Leverage [Dou-s1,500,00-B 1,500,000 4%ar($1,500,00 -sisoo ows-suaoo. Degree of Operating leverage IDOL,-($1,500,000-$600,000) / SL50 aco. sep0,000 . SS400 ol

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