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All Home Appliance company makes cooling fans. The firm's income statement is as follows: 6. Sales (7,000 fans at $20)...$140,000 56,000 Less: Variable costs ($7000
All Home Appliance company makes cooling fans. The firm's income statement is as follows: 6. Sales (7,000 fans at $20)...$140,000 56,000 Less: Variable costs ($7000 fans at 8 Fixed o. 4,000 Earning before interest and taxes (EBIT...40 Interest (1) 10,000 Taxes (T... 6,000 Earning after taxes (EAT 24,000 Compute: a. Degree of operating leverage. b. Degree of Financial leverage. c. Degree of combined leverage. d. The break-even point
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