U$.$S$.$ Steal has the following income statement data:

a$.$ Compute DOL based on the following formula $($see page $131$ for an example$)$:

DOL $=\frac{\text{P}\text{e}\text{r}\text{c}\text{e}\text{n}\text{t}\text{c}\text{h}\text{a}\text{n}\text{g}\text{e}in\text{o}\text{p}\text{e}\text{r}\text{a}\text{t}\text{i}\text{n}\text{g}\text{i}\text{n}\text{c}\text{o}\text{m}\text{e}}{\text{P}\text{e}\text{r}\text{c}\text{e}\text{n}\text{t}\text{c}\text{h}\text{a}\text{n}\text{g}\text{e}in\text{u}\text{n}\text{i}\text{t}\text{s}\text{s}\text{o}\text{l}\text{d}}$

b$.$ Confirm that your answer to part $a$ is correct by recomputing DOL using

Formula $5-3.$ There may be a slight difference due to rounding.

DOL$=\frac{Q(P-VC)}{Q(P-VC)-FC}$

$Q$ represents beginning units sold $($all calculations should be done at this

level$).P$ can be found by dividing total revenue by units sold. VC can be

found by dividing total variable costs by units sold.