A DOL Sub mode Financial Calculation

Variables (VARS)

  Variables SAL, VC, FC, and DOL are used in the DOL

sub mode.

  DOL sub mode variable contents are cleared whenever

you change to another mode other than the BEVN Mode

sub modes (BEV, MOS, DOL, DFL, DCL, QTY CONV.).

A Calculation Formula

SAL   VC

DOL = SAL   VC   FC

SAL

: Sales Amount

VC

: Variable Cost

FC

: Fixed Cost

DOL

: Degree of Operating Leverage

k Degree of Financial Leverage Sub 

mode (Break Even Mode 4)

  The Degree of Financial Leverage (DFL) sub mode lets

you calculate the influence of interest on earnings before

interest and taxes (EBIT).

A Entering the DFL Sub mode

1. Press B to enter the Break Even Mode.

2. Use fc to select

 DFL:EXE .

3. Press E.

Value Input Screen

A Setting Values

Values Used

No. Display

Name

in Examples

Earnings Before Interest and

1 EIT

$400,000

Taxes (EBIT)

2 ITR

Interest

$80,000

3 DFL

Degree of Financial Leverage

1.25

E 86