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ExxonMobil, an oil and gas company, provides the following financial data: Sales Revenue: $3,000,000,000 Variable Costs: $1,800,000,000 Fixed Costs: $800,000,000 Interest Expense: $150,000,000 Depreciation: $100,000,000

  1. ExxonMobil, an oil and gas company, provides the following financial data:
  • Sales Revenue: $3,000,000,000
  • Variable Costs: $1,800,000,000
  • Fixed Costs: $800,000,000
  • Interest Expense: $150,000,000
  • Depreciation: $100,000,000
  • Tax Rate: 25%
  • Total Assets: $2,500,000,000
  • Total Liabilities: $1,500,000,000
  • Shareholders' Equity: $1,000,000,000

Requirements:

  1. Prepare an Income Statement for ExxonMobil.
  2. Calculate the Contribution Margin.
  3. Determine the Break-Even Point in units (assume the average sales price per unit is $50).
  4. Calculate the Debt-to-Equity Ratio and Interest Coverage Ratio.

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