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I messed up somewhere. Not sure where. Smith Bottling Company (SBC) expects this year's sales to be $600,000. SBC's variable operating costs are 75 percent
I messed up somewhere. Not sure where.
Smith Bottling Company (SBC) expects this year's sales to be $600,000. SBC's variable operating costs are 75 percent of sales and its fixed operating costs are $I00,000. SBC has $2,000,000 in and a debt ratio of 50%. It pays interest on its debt equal to 4% and its marginal tax rate is 40 percent. If sales turn out to be $660,000 rather than what will be SBC's EBIT? Be sure calculate DOL rather than creating a new income statement. If sales turn out to be $660,000 rather than $600,000, what will be SBC's NI? Be sure to calculate DTL rather than creating a new income statement Step by Step Solution
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