Breakeven Level and Degree of Operating Leverage

Related BrainMass Solutions

• Degree of Operating Leverage

  The operating cash flow will change by 3.25X16.36%=53.18% The new level of operating leverage is lower. As the output rises and we move away from the breakeven units, the degree of operating leverage falls.

• Question about Leverage and risk

  Breakeven units = Fixed cost/unit contribution margin = 28,000/(1.00-0.84) = 175,000 units Breakeven is calculated at the operating level and so we do take interest and taxes in consideration b) Use the degree of operating leverage (DOL) formula

• Operating Leverage and Breakeven

  Day's degree of operating leverage (DOL) at a sales level of 600 suits? At a sales level of 3,000 suits?

• Operating & financial leverage,BEP & EPS

  What is Rogers' breakeven level of sales at the level of fixed operating costs determined in (a)? See attached Excel file.

• Accounting: Break-even analysis

  Karmen P13-9: Degree of operating leverage Grey Products has a fixed operating cost of $380,000, variable operating costs of$16 per unit, and a selling price of $63.50 per unit. 1. Calculate the operating breakeven point in units.

• Trident Food Corporation

  Degree of operating leverage = (EBIT + Fixed Cost)/EBIT = (13,500 + 24,000)/13,500 = 2.78 What is the degree of total leverage for Trident?

• Tetrangle Manufacturing has fixed costs of $2,160 per day. What is the break even level of daily output for the firm?

  Degree of operating leverage (DOL) measures the EBIT's percentage change as a result of a change of one percent in the level of output. It helps in measuring the business risk.

• Capital Structure Multiple Choice

  The degree of operating leverage is an index number that measures the effect of a change in sales price on the operating breakeven point__________. 2.

• XYZ Corp: Fixed Costs vs. Variable Costs scenarios

  Then breakeven revenue (= breakeven quantity * price) will also go up. b) does the degree of operating leverage (DOL) go up or down?