Question
1. MNO had the following data for 2016: Sales $15 million Fixed Costs $3 million Interest Cost $2.5 million Variable Costs $8 million Tax Rate
1. MNO had the following data for 2016:
Sales $15 million
Fixed Costs $3 million
Interest Cost $2.5 million
Variable Costs $8 million
Tax Rate 40%
a. Calculate the DOL, DFL, and DCL b. What will be the expected level of EBIT and NI if next years sales Increase 15%?
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley Eakins
6th International Edition
0321552113, 9780321552112
