Hello, I’m having trouble finding the operation costs using the DOL formula. (I get f= -0.30645) The question is the following:
Use the following information regarding Beta Inc. to answer Questions a) to e):
Number of units sold = 450,000
Sales price per unit = $15
Variable cost per unit = $6
Degree of operating leverage = 1.30645
Degree of financial leverage = 1.08772
a) Beta Inc.’s fixed operating costs are
b) Beta Inc.’s fixed financial costs are
c) Beta Inc.’s degree of total leverage is
d) Beta Inc.’s breakeven number of units is
e) Beta Inc.’s operating breakeven number of units is
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