Consider a four-year project with the following information: initial fixed asset investment = €490,000; straight line depreciation over the four-year life; zero salvage value; price = €32; variable costs = €19; fixed costs = €210,000; quantity sold = 110,000 units; tax rate = 34 per cent. The degree of operating leverage at the given level of output (DOL) is 1.248. What is the degree of operating leverage at the accounting break-even level of output?Question 17Select one:a.1.1563b.2.2213c.2.7143d.1.8971FeedbackYour answer is incorrect.The accounting break-even is: QA= (FC + D)/(P – v)So: QA = [€210,000 + (€490,000/4)]/(€32 – 19) = 25,576.9And, at the accounting break-even level, the DOL is: DOL = 1 + F/OCF = 1+ [€210,000/(€490,000/4)]  = 2.7143The correct answer is:2.7143

The question is asking for the degree of operating leverage at the accounting break-even level of output.

First, we need to calculate the accounting break-even point. This is done using the formula: QA= (FC + D)/(P – v).

In this case, the fixed costs (FC) are €210,000, the depreciation (D) is €490,000 divided by 4 (since it's a four-year project), the price (P) is €32, and the variable costs (v) are €19.

So, the calculation is: QA = [€210,000 + (€490,000/4)]/(€32 – 19) = 25,576.9 units.

Next, we need to calculate the degree of operating leverage (DOL) at the accounting break-even level. The formula for this is: DOL = 1 + F/OCF.

In this case, the fixed costs (F) are €210,000 and the operating cash flow (OCF) is the depreciation, which is €490,000 divided by 4.

So, the calculation is: DOL = 1+ [€210,000/(€490,000/4)] = 2.7143.

Therefore, the degree of operating leverage at the accounting break-even level of output is 2.7143.

Consideriamo un progetto di quattro anni con le seguenti informazioni: investimento iniziale in attività fisse = €490.000; ammortamento in linea retta nel corso della vita di quattro anni; valore di recupero zero; prezzo = €32; costi variabili = €19; costi fissi = €210.000; quantità venduta = 110.000 unità; aliquota fiscale = 34 per cento. Il grado di leva operativa al dato livello di produzione (DOL) è 1,248. Qual è il grado di leva operativa al livello di pareggio contabile della produzione?

Seleziona una: a.1.1563 b.2.2213 c.2.7143 d.1.8971

La tua risposta è sbagliata.

Il pareggio contabile è: QA= (FC + D)/(P – v) Quindi: QA = [€210.000 + (€490.000/4)]/(€32 – 19) = 25,576.9 E, al livello di pareggio contabile, il DOL è: DOL = 1 + F/OCF = 1+ [€210.000/(€490.000/4)] = 2.7143

La risposta corretta è: 2.7143