Question 4. 4. Holt Company's variable expenses are 70% of sales. At a $300,000 sales level, the degree of operating leverage is 10. If sales increase by $60,000, the degree of operating leverage will be:

12 10 6 4

Sales 300 VC 210 CM 90 FC 81 Profit 9..... Degree of OL = CM / Profit, or 90 / 9 = 10 times Sales 360 VC 252 CM 108 FC 81 Profit 27....Degree of OL = 108 / 27, or 4 times Note that CM increased to 108; FC remained at 81; so 9 became 27

But I have one question where did you get 210 and 90 and 81 and 9 and then 360 and 252 and 108 and 81 then 27.. That where I am lost the most. Understand that formula but not how the numbers get there.