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5. The Wayne Company manufactures and sells doors to home builders. The doors are sold for $25 each. Variable costs are $15 per door, and

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5. The Wayne Company manufactures and sells doors to home builders. The doors are sold for $25 each. Variable costs are $15 per door, and fixed operating costs total $50,000 which include depreciation in the amount of $2,000. The company is currently selling 6,000 doors per year. The company has total financial charges of $2,000, half in interest expense and half in preferred stock dividends. The corporate tax rate is 40% a. Calculate the break-even point. b. Calculate the cash break-even point. c. Calculate the degree of operating leverage. d. Determine the degree of financial leverage. e. What is the degree of combined leverage in this case? f. If the company would be able to double its sales, what would be the percentage increase in operating profit and in EPS

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