Compute the firms dol and dfl between sales levels of 70000


XYZ Co produces Gidgets that sell for $35/unit, variable cost = $12/ unit, annual fixed cost = $720,000, depreciation = $325,000. The firm has annual interest expense of $450,000, and faces tax rates of 35%. XYZ has 100,000 shares outstanding. Compute the firm’s DOL and DFL between sales levels of 70,000 and 75,000 units.

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Financial Management: Compute the firms dol and dfl between sales levels of 70000
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