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Below is an income statement for Enderby Inc. Enderby Inc. Income Statement Year ended December 31, 2019 Sales Variable operating costs Fixed operating costs EBIT

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Below is an income statement for Enderby Inc. Enderby Inc. Income Statement Year ended December 31, 2019 Sales Variable operating costs Fixed operating costs EBIT Interest expense EBT Taxes (30%) EAT $950,000 285,000 225,000 440,000 230,000 210,000 63,000 $147,000 a) Calculate the break-even point in dollars (interest is a fixed cost) (2 marks) Round to the nearest doll Break Even Point - fixed cost / CMR. CMR - Total contribution Mergin Istal coles. Calculate (3 marks) Round all to two decimal places (EG: 2.25x). a. DOL - Income before fired operating costs Income after fixed operating cost 6655,000 490,000 b. DFL- Income before fixed interest - EBIT EBT 2.10 Income after fixed interest 640,000 210,000 C. DCL - DOL Y DEL 1.524 2.10 3.20. b) Use the DCL to calculate the amount of EAT if sales increased to $1,140,000. (1 mark) Round to the nearest dollar

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