Question

DOL, DFL & DTL or DCL Boxes = Chocolate Boxes 15, 000 Boxes 20,000 Boxes Sales...

DOL, DFL & DTL or DCL

Boxes = Chocolate Boxes

15, 000 Boxes

20,000 Boxes

Sales @ $12 per box

180,000

240,000

Variable Cost @ $5 per box

75,000

100,000

Fixed Costs

60,000

60,000

EBIT

45,000

80,000

Interest Expense

5,000

5,000

EBT

40,000

75,000

Taxes @ 30%

12,000

22,500

Net Income

28,000

52,500

Please calculate the DOL, DFL & DTL at 15,000 boxes.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

DOL is computed as shown below:

= ( Sales - variable cost ) / EBIT

= ( $ 180,000 - $ 75,000 ) / $ 45,000

= 2.333 Approximately

DFL is computed as shown below:

= EBIT / EBT

= $ 45,000 / $ 40,000

= 1.125

DCL is computed as shown below:

= DOL x DFL

= 2.333 x 1.125

= 2.625 Approximately

Feel free to ask in case of any query relating to this question

Add a comment
Know the answer?
Add Answer to:
DOL, DFL & DTL or DCL Boxes = Chocolate Boxes 15, 000 Boxes 20,000 Boxes Sales...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • The Tasty Chocolate Company is a merchandising company that sells boxes of assorted chocolates. The company's...

    The Tasty Chocolate Company is a merchandising company that sells boxes of assorted chocolates. The company's marketing department estimated sales and purchasing needs for the next three months. These figures follow: (In Units) October November December Beginning Inventory Merchandise Purchases 10,000 60,000 60,000 10,000 10,000 70,000 70,000 10,000 10,000 35,000 40,000 5,000 Sales Ending Inventory. Units are sold for $12 each. One fourth of all sales are paid for in the month of sale and the balance is paid in...

  • Module 2 Assignment ABC Inc. 2020 sales are $1,000,000. Operating costs (excluding depreciation) are 65% of...

    Module 2 Assignment ABC Inc. 2020 sales are $1,000,000. Operating costs (excluding depreciation) are 65% of sales. Net fixed assets are $195,000. Depreciation amounted to 12% of net fixed assets. Interest expenses are $105,000. The tax bill must be calculated using the corporate income tax table in the text, and ABC Inc. paid 8% of net income in dividends. Prepare ABC Inc.’s income statement for 2018: ABC Inc. Income Statement 2020 Sales Operating costs (excluding depreciation) EBITDA Depreciation EBIT Interest...

  • Year 20x2 Current Year 20X3 Year 20X1 849,750 524,000 325,750 $ $ $ 1,580,000 $ 875,200...

    Year 20x2 Current Year 20X3 Year 20X1 849,750 524,000 325,750 $ $ $ 1,580,000 $ 875,200 $ 704,800 $ 3,100,000 1,580,000 1,520,000 Income Statement Revenue Cost of Goods Sold Gross Profit Administrative Expenses: Rent Expense Utilities Expense Wages Expense Office Expense Depreciation Expense Total Expenses Net Income 75,000 $ 25,000 $ 145,000 $ 5,500 $ 10,000 $ 260,500 $ 65,250 $ 90,000 $ 40,000 $ 315,000 $ 15,000 $ 65,000 $ 525,000 $ 179,800 $ 162,000 210,000 550,000 28,000 150,000...

  • QUESTION 1 AlpenPleasure Co. produces 1000 boxes of chocolate. Each box sells for $30. AlpenPleasure pays...

    QUESTION 1 AlpenPleasure Co. produces 1000 boxes of chocolate. Each box sells for $30. AlpenPleasure pays wages of $10,000 and buys $15,000 worth of cocoa beans and other ingredients needed to produce the chocolate. What is AlpenPleasure's contribution (value-added) to GDP? $5,000 $45,000 $15,000 $20,000 QUESTION 2 There is currently a lot of debate in the U.S. about raising the minimum wage. As a contribution to this debate, the Wall Street Journal recently reported the following numbers: In 1980, the...

  • Here is the question we were given: Use Problems 10-15 and 10-16 (GIVEN BELOW) to prepare an activity statement (operati...

    Here is the question we were given: Use Problems 10-15 and 10-16 (GIVEN BELOW) to prepare an activity statement (operating statement), a comparative statement of financial position (balance sheet), and a statement of cash flows (using the indirect method). What do you learn from these statements, and what questions do they raise? Problem 10-15: The American Research Council for Humanities (ARCH) had the following financial events during the current year: 1. January 12. Received a $300,000 payment from a pledge...

  • How do you fill out the income statement with the information above? Dawson, Inc. Trial Balances...

    How do you fill out the income statement with the information above? Dawson, Inc. Trial Balances Dec 31, 2018 & 2017 Account # Account Description 1000 Cash 1050 Investments - Trading Prior Year Ending - FINAL 31-Dec-2017 Debit Credit 5,785,000 500,000 Current Year Ending - FINAL 31-Dec-2018 Credit 5,210,000 500,000 $ 15,000 3,800,000 5,000 4,900,000 140,000 220,000 1051 1100 1150 1200 1310 1320 1700 3,350,000 40,000 270,000 300,000 118,000 300,000 4,665,000 45,000 80,000 370,000 340,000 130,000 300,000 1720 1730 1810...

  • LILI SDN BHD is a manufacturer and supplier of home cabinets. It has two main Departments...

    LILI SDN BHD is a manufacturer and supplier of home cabinets. It has two main Departments that is the Production Department and the Service Department. The Production department has three (3) sub-departments: Machining, Assembly and Finishing. All three departments are labor-intensive. The Service Department has two sub-department which is Maintenance and General Services. Cost Data Production Departments Service Departments Cost Items (RM) Fabrication Assembly Finishing Maintenance Gen.Services Indirect Supplies 3,000 2,500 2,000 1,000 2,500 Indirect Labour 18,000 10,000 8,000 4,500...

  • Prepare and submit (IN PROPER FORM) a budgeted balance sheet for June 30 and a budgeted...

    Prepare and submit (IN PROPER FORM) a budgeted balance sheet for June 30 and a budgeted income/retained earnings statement for the three months ending June 30. Someone please help me with my managerial accounting homework! The assignment is as follows and I have all the info needed attached. Just in the regular format it doesn't matter! Please Help! Assignment: DIRECT MATERIALS BUDGET Additional data: • 5 pounds of material are required per unit of product. • Management desires to have...

  • please I am having a lot of problems with the questions above .I am getting ready for the final this week.Can you please answer all of them . Tab 07) How many of the following events would requ...

    please I am having a lot of problems with the questions above .I am getting ready for the final this week.Can you please answer all of them . Tab 07) How many of the following events would require an expense to be recorded? Ordering office supplies Hiring a receptionist Paying employces' salaries for the current month Receiving but not paying a current utility bill Paying for insurance in advance A) One D)Iwo. C) Three. B) Four 08) The balance sheet...

  • MERCHANDISING ACOUNTING Joe Blink opened Blink Corporation. It has link Corporation. It has issued 20,000 shares...

    MERCHANDISING ACOUNTING Joe Blink opened Blink Corporation. It has link Corporation. It has issued 20,000 shares of $4 par value common stock. It authorized 900,000 S od 900,000 share. The corporation is a merchandising business. Blink ventory system. Also Blink provides a 2-year warranty with one of its products which was first sold in October. Blink Corporation Trial Balance periodic inventory system September 30 Cr. Cash Dr. $ 54,000 14,000 Inventory Land 45,000 Plant Building 500,000 Accumulated Depreciation-plant Equipment 200,000...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT