Question
based on the table below, kindly calculate the financial leverage: Sales (75,000 units) $750,000 Variable costs 225,000 Contribution margin 525,000 Fixed manufacturing costs 187,500 Operating
based on the table below, kindly calculate the financial leverage:
| Sales (75,000 units) | $750,000 |
| Variable costs | 225,000 |
| Contribution margin | 525,000 |
| Fixed manufacturing costs | 187,500 |
| Operating income | 337,500 |
| Interest | 75,000 |
| Earnings before taxes | 262,500 |
| Taxes (at 31%) | 81,375 |
| Net income | $181,125 |
| Shares outstanding | 15,000 |
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Corporate Financial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
13th edition
1285868781, 978-1285868783
