3.Calculate the value of Degree in Operating Leverage (DOL)*2 points0.18 times1.18 times2.18 times2.88 times

1. Break Down the Problem

We need to calculate the Degree of Operating Leverage (DOL) using the given values. DOL is a financial metric that measures the sensitivity of operating income to changes in sales volume.

2. Relevant Concepts

The formula for DOL at a certain level of sales is given by: $DOL = \frac{\text{Contribution Margin}}{\text{Operating Income}}$

However, since we’re provided with multiple-choice options, we can interpret this to mean calculating the different DOL scenarios.

3. Analysis and Detail

We are given four options for calculating the DOL represented in terms of their multiplicative factors. Given choices:

• 0.18 times
• 1.18 times
• 2.18 times
• 2.88 times

In this case, you would multiply the base (often considered as 1) with the provided factors.

4. Verify and Summarize

Assuming that we are focusing on the effect of these multipliers on the DOL, we can derive each scenario based on a hypothetical base DOL of 1.

Final Answer

• 0.18 times: $DOL = 0.18$
• 1.18 times: $DOL = 1.18$
• 2.18 times: $DOL = 2.18$
• 2.88 times: $DOL = 2.88$

Based on this, the answer is simply the values presented. If you need to select a singular DOL value, please specify further information for clarification.