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How much is the new net income, if sales increase by 50%, COGS are 60% of Sales, SG&A increases by 25%, interest expense remains the
How much is the new net income, if sales increase by 50%, COGS are 60% of Sales, SG&A increases by 25%, interest expense remains the same, and the tax rate does not change? (Answer in whole dollars, no cents.) Old Income Statement New Income Statement Sales 50,000 Sales _____ COGS 30,000 COGS _____ SG&A 10,000 SG&A _____ EBIT 10,000 EBIT _____ Interest Exp 5,000 Interest Exp _____ EBT 5,000 EBT _____ Taxes 2,000 Taxes _____ Old Net Income $3,000 New Net Income _____
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