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DOL, DFL, and DTL of a firm

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?

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