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Following is the December 31, 2019 Income Statement for Salty's Peanuts: Salty's Peanuts Income Statement For the year ended Dec 31, 2019 $160.000 Sales (20,000
Following is the December 31, 2019 Income Statement for Salty's Peanuts: Salty's Peanuts Income Statement For the year ended Dec 31, 2019 $160.000 Sales (20,000 bags at $8 each) Less: Variable costs (20,000 bags at $3.00 each) Contribution margin Less: Fixed costs Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Income tax expense Earnings after taxes (EAT) 60.000 100.000 40.000 60.000 10.000 50,000 15.000 $ 35.000 What is the degree of operating leverage (DOL) for Salty's Peanuts? O 1.67 o 1.20 1.36 1.82 What is the degree of financial leverage (DFL)? 1.20 1.36 1.80 01.43 Question 12 (2 points) What is the degree of combined leverage (DCL)? 2.0 1.20 1.67 What is the break-even point in sales dollars? $60,000 None of the given solutions. $48.000 $64.000
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