-The Degree of Operating Leverage (DOL)is:
A) 1

question 36

Multiple Choice

$$\begin{array} { l r } \text { Sales } ( 30,000 \text { units } ) & \$ 150,000 \\\text { Variable costs } & \underline { 100,800 } \\\text { Contribution margin } & 49,200 \\\text { Fixed manufacturing costs } & \underline { 24,000 } \\\text { Operating Income } & 25,200 \\\text { Interest } & \underline { 18,000 } \\\text { Earnings Before Taxes } & 7,200 \\\text { Taxes } ( 30 \% ) & \underline { 2,160 } \\\text { Net Income } & \underline { \$ 5,040 } \\\text { Shares Outstanding } & 600\end{array}$$
-The Degree of Operating Leverage (DOL) is:

• A) 1.58x.
• B) 1.95x.
• C) 3.50x.
• D) 1.40x.

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Definitions:

Dollar Terms

Financial measurements or transactions denoted in U.S. dollars, commonly used in international finance to compare values across countries.

Sea Scallop

A species of scallop found in the marine environment known for its edible adductor muscle, often considered a delicacy.

Individual Transferable Quotas

Regulatory tools that allocate the total allowable catch of fishery resources among individual fishers or companies, who can then trade these rights.

Fishery

The industry or activity of catching, processing, and selling fish and other aquatic organisms.