Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Click to see additional instructions Carolina Fastener, Inc., makes a patented marine bulkhead latch that wholesales for $6.03. Each latch has variable operating costs of

image text in transcribed

Click to see additional instructions Carolina Fastener, Inc., makes a patented marine bulkhead latch that wholesales for $6.03. Each latch has variable operating costs of $3.41. Fixed operating costs are $49,100 per year. The firm pays $12,300 interest and preferred dividends of $7,000 per year. At this point, the firm is selling 31,000 latches per year and is taxed at a rate of 40%. Calculate the following: The operating breakeven point is units. (Round to the nearest integer.) The firm's EBIT is $ (Round to the nearest dollar.) Calculate the earnings available for common below: (Round to the nearest dollar.) EBIT Less: Interest expense EBT Less: Taxes (40%) Net profits Preferred stock dividend EACS The degree of operating leverage is (Round to three decimal places.) The degree of financial leverage is (Round to three decimal places.) The degree of total leverage is (Round to three decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A One Year Accounting Course

Authors: Trevor Gambling

21st Edition

0080130275, 9780080130279

More Books

Students also viewed these Accounting questions

Question

Do you use encouragement with others?

Answered: 1 week ago

Question

Be able to suggest some future options for human resources

Answered: 1 week ago

Question

Be able to create a contract for consultant services

Answered: 1 week ago