Consider the following statements: Statement 1: The DOL measures the sensitivity of net income to changes in the number

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Consider the following statements:
Statement 1: The DOL measures the
sensitivity of net income to changes in the number of units
sold.
Statement 2: The DFL measures the
sensitivity of net income to changes in operating income.
Which of the following is most likely?
Group of answer choices
Only Statement 2 is correct.
Only Statement 1 is correct.
Both statements are correct.
Number of units sold = 450,000
Sales price per unit = $15
Variable cost per unit = $6
Degree of operating leverage = 1.30645
Degree of financial leverage = 1.08772
Beta Inc.’s fixed operating costs are closest
to:
Group of answer choices
$850,000
$950,000
$750,000
An analyst gathered the following information regarding Violet
Inc.:
Number of units sold = 500,000
Contribution margin per unit = $22
Fixed operating costs = $1,500,000
Fixed financing costs = $400,000
Which of the following is most accurate?
Group of answer choices
Row B
Row C
Row A