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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
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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