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2) Use the following information to answers given questions Current assets =$50,000 Fixed asset turnover = 4 times Total variable costs = total costs of
2) Use the following information to answers given questions Current assets =$50,000 Fixed asset turnover = 4 times Total variable costs = total costs of goods sold Operating profit margin = 20% Interest = $10,000 per year No. of units sold = 5,000 units Price per unit = $100 Fixed operating cost = $30,000 (including depreciation) Depreciation expense = $10,000 Company is using only debt and common equity No. of common stock = 1,000 shares a) Find accounting break even in units and in sales. b) Find cash break even in units. c) Find degree of operating leverage. d) If sales of this company increase by 20%, how much EBIT would the firm generate
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