D if healthy foods has an annual interest expense of

d . If Healthy Foods has an annual interest expense of $10,000, calculate the degree of
financial leverage at both 20,000 and 25,000 bags.

e . What is the degree of combined leverage at both sales levels?

15. Use of different formulas for operating leverage (LO3) U.S. Steal has the following income
statement data:
Units
Sold
Total
Variable
Costs
Fixed
Costs
Total
Costs
Total
Revenue
Operating
Income
(Loss)
60,000 $ 120,000 $50,000 $170,000 $360,000 $190,000
80,000 160,000 50,000 210,000 480,000 270,000
a. Compute DOL based on the following formula:
b. Confirm that your answer to part a is correct by recomputing DOL using Formula 5–3.
There may be a slight difference due to rounding.