18. Assume that the DOL is equal to 2.60. If XYZ expects sales to decrease 20%, by how much will the net income decrease next year?

$68,000

$78,000

$58,000

$48,000

$38,000

19. Based on the cost and revenue structure on the XYZ income statement above, XYZ is earning a net income equal to 18.75% ($150,000/$800,000) of sales. In order to earn a target net income equal to 30% of sales, what would the sales dollars have to be (using the Y-formula)?

a.	$1,000,000
b.	$1,200,,000
c.	$900,000 d)1,100,000

Below is an income statement for XYZ Company: 15. Based on the cost and revenue structure on the XYZ income statement, what was the break-even point in sales dollars (using the Y-formula)? a $600,000 b. $500,000 c. $400,000 d. $700,000 16. What was the XYZ's margin of safety (rounded to the nearest whole number)? a. 10% b. 15% c. 20% d. 25% 17. What was the XYZ's Degree of Leverage (DOL)? a. 4.00 b. 6.67 c. 5.00 d. 10.00