b

Irresistible Chips is reviewing its financial condition. The firm generated an operating profit of $5,302,453. The firms interest expense was $2,597,626.

What will be the resulting percentage change in earnings per share if they expect operating profit to change 8.9 percent?

(You should calculate the degree of financial leverage first).

(Write the percentage sign in the "units" box).

Round the answer to two decimals

Your Answer:

c

Haunted Forest, Inc.is selling fog machines.

Use the following information about Haunted Forest, Inc. to answer the following questions.

Average selling price per unit $346.

Variable cost per unit $180

Units sold 389

Fixed costs $16,622

Interest expense $4,229

Based on the data above, what is the degree of total (combined) leverage of Haunted Forest, Inc.?

Round the answer to two decimals

Your Answer:

Question 2 (1 point) The Poseidon Swim Company produces swim trunks. The average selling price for one of their swim trunks is $30.56. The variable cost per unit is $27.47, Poseidon Swim has average fixed costs per year of $42,581. What is the break-even point in dollar sales? Your