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Calculate decree of leverage for unit output levels.

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If an output level is 14,000 units the degree of operating leverage= 1.45 (round to 6 decimal places) , and the OCF= 19,600 but if:

a. output rises to 16,000 units the DOL will be ?
b. output falls to 13,500 units the DOL will be?

i did DOL= 1 + FC / OCF
1 + ? / 19,600 yet i do not know how to find the fixed costs.

for the same question yet with these numbers:
ouput=11,000units
DOL=3.15
OCF=24,200 a. if output rises to 12,500
b. if output falls to 9,500

DOL= 1 + FC / OCF
1 + ? / 24,200.

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Contribution = 19600 x 1.45 = 28420

Contribution margin = 28420/14000 = 2.03

Fixed cost = 28420 - 19600 = 8820

Thus DOL at 16000 units ...

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