a. DOL b. DFL C. DCL

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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please show the steps to calculate the DOL, DFL and DCL. please write out the steps 

Given a net income of $50,000, sales of $2,000,000, variable costs of
$25,000, fixed operating costs of $175,000, price per unit of $5.00, interest
expense of $20,000 and EBIT of $1,800,000, calculate:
a. DOL
b. DFL
C. DCL
Ancwer
Transcribed Image Text:Given a net income of $50,000, sales of $2,000,000, variable costs of $25,000, fixed operating costs of $175,000, price per unit of $5.00, interest expense of $20,000 and EBIT of $1,800,000, calculate: a. DOL b. DFL C. DCL Ancwer
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