Degree of operating leverage Grey Products has fixed operating costs of $380,000, variable operating… 1 answer below »
Degree of unhindered leverage Grey Products has unroving unhindered costs of $380,000, fickle unhindered costs of $16 per ace, and a selling value of $63.50 per ace.
a. Calculate the unhindered breakeven aim in aces.
b. Calculate the firm’s EBIT at 9,000, 10,000, and 11,000 aces, respectively.
c. With 10,000 aces as a corrupt, what are the percentage changes in aces sold and EBIT as sales instigate from the corrupt to the other sales levels used in sever b?
d. Use the percentages computed in sever c to enumerate the step of unhindered leverage (DOL).
e. Use the formula for step of unhindered leverage to enumerate the DOL at 10,000 aces.