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