Question
Could someone help me with this problem I really have no idea where to start! Find break even point, DOL, DOF, and EPS for Delsing
Could someone help me with this problem I really have no idea where to start!
Find break even point, DOL, DOF, and EPS for Delsing Canning Company
Delsing Canning Company is considering an expansion of its facilities. Its current income statement is as follows:
Sales.................................................................. | $5,500,000 |
Less: Variable expense (50% of sales)......... | 2,700,000 |
Fixed expense............................................. | 1,850,000 |
Earnings before interest and taxes (EBIT)....... | 900,000 |
Interest (10% cost)........................................... | 300,000 |
Earnings before taxes (EBT)............................ | 600,000 |
Tax (40%)......................................................... | 240,000 |
Earnings after taxes (EAT)............................... | $ 360,000 |
Shares of common stock |
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