The top row of the table has the beginning values and the bottom row of the tabl

Question

The top row of the table has the beginning values and the bottom row of the table has the ending values.

Compute DOL based on the formula below. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Percent change in operating income

Recompute DOL using the formula given below. There may be a slight difference due to rounding. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Q(P ? VC)

Explanation / Answer

Percentange change in operating income= 270000-190000/ 190000

=0.42

Percentage change in units sold= 80000-60000/60000

=0.33

DOL = 0.42/0.33

=1.27

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