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Degree of operating leverage Grey Products has fixed operating costs of $380,000, variable operating costs of $16.00 per unit, and a selling price of $63.50 per unit. a. Calculate the operating break-even point in units. b. Calculate the firm's EBIT at 9,000, 10,000, and 11,000 units, respectively. c. With 10,000 units as a base, what are the percentage changes in units sold and EBIT as sales move from the base to the other sales levels used in part (b)? d. Use the percentages computed in part (C) to determine the degree of operating leverage (DOL). e. Use the formula for degree of operating leverage to determine the DOL at 10,000 units. a. The operating break-even point is units. (Round to the nearest integer.) b. The EBIT for the 9,000 units level is $ . (Round to the nearest dollar.) The EBIT for the 10,000 units level is $ (Round to the nearest dollar.) The EBIT for the 11,000 units level is $ (Round to the nearest dollar.) c. With 10,000 units as a base, the change in sales as a percentage for the 9,000 units level is %. (Round to one decimal place.) With 10,000 units as a base, the change in sales as a percentage for the 11,000 units level is %. (Round to one decimal place.) With 10,000 units as a base, the change in EBIT as a percentage for the 9,000 units level is %. (Round to one decimal place.) With 10,000 units as a base, the change in EBIT as a percentage for the 11,000 units level is %. (Round to one decimal place.) d. The degree of operating leverage for the 9,000 units level is (Round to one decimal place.) The degree of operating leverage for the 11,000 units level is (Round to one decimal place.) e. The degree of operating leverage for the 10,000 units level is (Round to one decimal place.) Degree of operating leverage Grey Products has fixed operating costs of $380,000, variable operating costs of $16.00 per unit, and a selling price of $63.50 per unit. a. Calculate the operating break-even point in units. b. Calculate the firm's EBIT at 9,000, 10,000, and 11,000 units, respectively. c. With 10,000 units as a base, what are the percentage changes in units sold and EBIT as sales move from the base to the other sales levels used in part (b)? d. Use the percentages computed in part (C) to determine the degree of operating leverage (DOL). e. Use the formula for degree of operating leverage to determine the DOL at 10,000 units. a. The operating break-even point is units. (Round to the nearest integer.) b. The EBIT for the 9,000 units level is $ . (Round to the nearest dollar.) The EBIT for the 10,000 units level is $ (Round to the nearest dollar.) The EBIT for the 11,000 units level is $ (Round to the nearest dollar.) c. With 10,000 units as a base, the change in sales as a percentage for the 9,000 units level is %. (Round to one decimal place.) With 10,000 units as a base, the change in sales as a percentage for the 11,000 units level is %. (Round to one decimal place.) With 10,000 units as a base, the change in EBIT as a percentage for the 9,000 units level is %. (Round to one decimal place.) With 10,000 units as a base, the change in EBIT as a percentage for the 11,000 units level is %. (Round to one decimal place.) d. The degree of operating leverage for the 9,000 units level is (Round to one decimal place.) The degree of operating leverage for the 11,000 units level is (Round to one decimal place.) e. The degree of operating leverage for the 10,000 units level is (Round to one decimal place.)

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