ADOL 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.).

ACalculation Formula

DOL =

SAL VC

SAL VC FC

SAL : Sales Amount

VC : Variable Cost

FC : Fixed Cost

DOL : Degree of Operating Leverage

kDegree of Financial Leverage Submode (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).

AEntering the DFL Sub-mode

1. Press Bto enter the Break-Even Mode.

2. Use fc to select “DFL:EXE”.

3. Press E.

Value Input Screen

ASetting Values

No.

Display

Name

Values Used

in Examples

 

 

 

1

EIT

Earnings Before Interest and

$400,000

Taxes (EBIT)

 

 

 

 

 

 

 

2

ITR

Interest

$80,000

 

 

 

 

3

DFL

Degree of Financial Leverage

1.25

 

 

 

 

E-86