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At the end of the year , the manager of the company wants to know level of sales at which the earnings before tax will
At the end of the year , the manager of the company wants to know level of sales at which the earnings before tax will be zero using the P / V ratio . The following details are available : Common stock at par value of $ 10 each is $ 30 million , 7 % debentures of $ 100 each is $ 26.25 million , the sales is $ 4 million for the year , the fixed cost excluding interest is $ 390,000 , interest expense is $ 342,000 , and the operating leverage is 2. The tax rate is 25 % .Options:
$3753846.15, $2132147.54, $68480000.00 and $1753840.00
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