E-88
A
Calculation Formula
EIT
: Earnings Before Interest and Taxes (EBIT)
ITR
: Interest
DFL
: Degree of Financial Leverage
k
Degree of Combined Leverage Sub-
mode (Break-Even Mode 5)
• The Degree of Combined Leverage (DCL) sub-mode lets
you calculate the degree of operating leverage (percent
change in profit due to a change in sales amount), with
interest taken into consideration.
A
Entering the DCL Sub-mode
1. Press
B
to enter the Break-Even Mode.
2. Use
fc
to select
“DCL:EXE”.
3. Press
E
.
Value Input Screen
A
Setting Values
No. Display
Name
Values Used
in Examples
1
SAL
Sales Amount
$1,200,000
2
VC
Variable Cost
$600,000
3
FC
Fixed Cost
$200,000
4
ITR
Interest
$100,000
5
DCL
Degree of Combined Leverage
2
EIT
–
ITR
DFL
=
EIT