Degree of operating leverage   Grey Products has fixed operating costs of $387,000​, variable operating costs of $15.51

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answerhappygod
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Degree of operating leverage   Grey Products has fixed operating costs of $387,000​, variable operating costs of $15.51

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Degree of operating leverage   Grey Products has fixed operating
costs of $387,000​, variable operating costs of $15.51
per​ unit, and a selling price of $62.71 per unit.
a. Calculate the operating breakeven point in units.
b. Calculate the​ firm's EBIT at 12,000​, 13,000​, and
14,000 ​units, respectively.
c. With 13,000 units as a​ base, what are the percentage
changes in units sold and EBIT as sales move from the base to the
other sales levels used in part ​(b​)?
d. Use the percentages computed in part ​(c​) to determine the
degree of operating leverage​ (DOL).
e. Use the formula for degree of operating leverage to determine
the DOL at 13,000 units.
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