Answered step by step
Verified Expert Solution
Question
1 Approved Answer
i need help on these corporate finance questions please 3. ABC Co. Sells women watches with a price of $25, with a variable cost per
i need help on these corporate finance questions please
3. ABC Co. Sells women watches with a price of $25, with a variable cost per unit of $15, and fixed costs of $140,000. a. What is profit/loss of the company if it sells 8000 watches? 18,000 watches? Calculate break even point and draw a graph. b. c. What are degree of operating leverage for the sales of 16,000 and 18,000 watches? d. Assume that company is selling 18,000 watches annually. If interest expense is $30,000, calculate degree of financial leverage and degree of total leverage. e. If the company management wants to increase its EPS by 80% assuming that they are currently selling 18,000 watches, what percent they should increase their EBIT? Sales Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started