Compute surfsides degree of operating leverage

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Reference no: EM131911612

Solve the Question Given below

Using the latest income statement for Surfside Airlines presented in the table below, compute Surfside's degree of operating leverage (DOL), degree of financial leverage (DFL), and degree of total leverage (DTL).

Sales	$150,000
Variable Operating Costs	($105,000)
Gross Profit	$45,000
Fixed Operating Costs	($20,000)
Net Operating Costs	$25,000
Interest	($15,000)
EBT	$10,000
Taxes (40%)	($4,000)
NI	$6,000

Reference no: EM131911612

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