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I need help with this question, please. DOL and DFL for both years 5. Give the following: ITEM BASE SALES FORECAST SALES LEVEL, t LEVEL,
I need help with this question, please. DOL and DFL for both years
5. Give the following:
ITEM BASE SALES FORECAST SALES
LEVEL, t LEVEL, t + 1
___________________________________________________________
Sales $300,000 $400,000
Less: Variable Costs
Less: Fixed Costs
EBIT $100,000
Less: Interest( fixed)_
EBT $60,000
Less: taxes @ 50%
Net Income $30,000 $63,333
# Shares 10,000 10,000
EPS $ $
Compute the following :
1. DOL =
2. DFL =
5. Give the following: ITEM BASE SALES LEVEL, I FORECAST SALES LEVEL, t+1 $400,000 Sales $300,000 Less: Variable Costs Less: Fixed Costs EBIT Less: Interest( fixed) $100,000 Less: taxes @ 50% Net Income # Shares $60,000 $30,000 10,000 $63,333 10,000 EPS mpute the following: 1. DOL = 2. DFL = 5. Give the following: ITEM BASE SALES LEVEL, I FORECAST SALES LEVEL, t+1 $400,000 Sales $300,000 Less: Variable Costs Less: Fixed Costs EBIT Less: Interest( fixed) $100,000 Less: taxes @ 50% Net Income # Shares $60,000 $30,000 10,000 $63,333 10,000 EPS mpute the following: 1. DOL = 2. DFL =Step by Step Solution
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