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10. (Unrelated to last problem) Sony has overall Revenue of $90 bil, variable costs of 34.3 bil and fixed costs of 33 bil. (Do not
10. (Unrelated to last problem) Sony has overall Revenue of $90 bil, variable costs of 34.3 bil and fixed costs of 33 bil. (Do not add zeroes!) Assume a price of good of $120 and variable cost of $46. Assume a tax rate of 21%. a. What is break even revenue? b. What is break even quantity? c. Calculate the EBIT of Sony i. At current level of revenues ii. If revenues go up 20% iii. At revenues go down 20% iv. What is the change in EBIT? d. If Sony has $2.65 billion of interest expense and 7.71 billion shares of common stock outstanding, what is the earnings per share at the current level of revenues? (If you choose, you can calculate EPS at levels in cii and ciii to answer e.)
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