Solve the Question Given below
Using the latest income statement for Surfside Airlines presented in the table below, compute Surfside's degree of operating leverage (DOL), degree of financial leverage (DFL), and degree of total leverage (DTL).
|
Sales
|
$150,000
|
|
Variable Operating Costs
|
($105,000)
|
|
Gross Profit
|
$45,000
|
|
Fixed Operating Costs
|
($20,000)
|
|
Net Operating Costs
|
$25,000
|
|
Interest
|
($15,000)
|
|
EBT
|
$10,000
|
|
Taxes (40%)
|
($4,000)
|
|
NI
|
$6,000
|