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Use of different formulas for operating leverage ( LO 3 ) U . S . Steal has the following income statement data: a . Compute
Use of different formulas for operating leverage LO US Steal has the following
income statement data:
a Compute DOL based on the following formula:
DOL
b Confirm that your answer to part is correct by recomputing DOL using Formula
There may be a slight difference due to rounding.
DOL
represents beginning units sold all calculations should be done at this
level
can be found by dividing total revenue by units sold.
VC can be found by dividing total variable costs by units sold.
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