Cash Flow DOL: The law firm of Dewey, Cheatem, and Howe has monthly fixed costs of $100,000, EBIT of $250,000, and depreciation charges on its office furniture and computers of $5,000.
Calculate the Cash Flow DOL for this firm.
|
Monthly Fixed Costs |
|
|
|
|
|
|
Depreciation |
|
$5,000 |
|
|
|
|
|
|
EBIT |
|
$250,000 |