Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Following is the December 31, 2021 Income Statement for Salty's Peanuts Salty's Peanuts Income Statement For the year ended Dec 31, 2019 Sales (20,000 bags

Following is the December 31, 2021 Income Statement for Salty's Peanuts Salty's Peanuts Income Statement For the year ended Dec 31, 2019 Sales (20,000 bags at $8 each) Less: Variable costs (20,000 bags at $3.00 each) Contribution margin Less: Fixed costs Earings before interest and taxes (EBIT) Interest expense Eamings before taxes (EBT) Income tax expense Earnings after taxes (EAT) $160,000 60.000 100.000 0000 60,000 20.000 40,000 20.000 $ 20.000 Question 9 (2 points) Saved What is the degree of operating leverage (DOL) for Salty's Peanuts? 1.82 1.36 1.20 1.67 Question 10 (2 points) Saved What is the degree of financial leverage (DFL)? 1.36 1.20 1.80 15 Question 11 (2 points) Saved What is the degree of combined leverage (DCL)? 1.36 2.50 1.67 02.0 Question 12 (2 points) Saved What is the break-even point in sales dollars? $60,000 $48,000 None of the given solutions. O $64,000

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

Students also viewed these Accounting questions

Question

=+2. How could any of these nonverbal elements be made stronger?

Answered: 1 week ago