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$72,000, variable operating costs of $6.75 per unit, and a selling price of $9.75 per unit.
1. Calculate the operating breakeven point in units.
2. Compute the degree of operating leverage (DOL) using the following unit sales
levels as a base: 25,000, 30,000,. Use the formula given in the chapter.
3. Graph the DOL figures that you computed in part b (on the y axis) against
(on the x axis).
25,000 =25.000(9,75-6,75)-72000=3000
DOL = 1 + FC/EBIT = 25
DOL = 1 + FC/EBIT =5