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Use the following information to compute the firms degree of operating leverage (DOL), degree of financial leverage (DFL), and degree of total leverage (DTL):Sales $50,000Variable

Use the following information to compute the firms degree of operating leverage (DOL), degree of financial leverage (DFL), and degree of total leverage (DTL):Sales $50,000Variable operating costs(30,000)Gross profit $20,000 Fixed operating costs(15,000)Net operating income (EBIT) 5,000Interest expense( 3,000)Earnings before taxes (taxable income)$ 2,000Taxes (35%)( 700)Net income$ 1,300

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