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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 =

image text in transcribed

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 =

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