Jumbled DOL and DFL formulas?
DOL = Percentage change in operating income / Percentage change in units sold
= Q(P-V) / Q(P-V)-F
Aren’t the numerator and denominator jumbled and don’t agree with corresponding text description?
DFL = Percentage change in net income / Percentage change in operating income
= Q(P-V)-F / Q(P-V)-F-C
Same comment here. Isn’t Q(P-V)-F the operating income and Q(P-V)-F-C the net income?
If I remember correctly, this is also the way they are presented in the CFAI readings. If this is the case, should we follow the formula over the text description? |