Explore BrainMass

Explore BrainMass

    DOL, DFL, and DTL of a firm

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The following are from the production statements of LMNO, Inc.

    2004

    Units Produced - 758,000

    Sales Price per Unit - $ 10.75

    Variable cost per unit - $ 4.62

    Fixed Cost - $ 1,187,250

    Interest Cost - $ 119,234

    A). What is the DOL of this firm?

    B). What is the DFL of this firm?

    C). What is the DTL of this firm?

    © BrainMass Inc. brainmass.com June 3, 2020, 6:58 pm ad1c9bdddf
    https://brainmass.com/business/finance/dol-dfl-dtl-firm-81605

    Solution Preview

    Units Produced - 758,000 = q
    Sales Price per Unit - $ 10.75 = p
    Variable cost per unit - $ 4.62 = v
    Fixed Cost - $ 1,187,250 = f
    Interest Cost - ...

    Solution Summary

    Computations shown for your learning.

    $2.19

    ADVERTISEMENT