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I'm really stuck. Please show all steps of working out The Earthl'ull Company produces a single type of MP3 player that can be sold at

I'm really stuck. Please show all steps of working out

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The Earthl'ull Company produces a single type of MP3 player that can be sold at a constant price of $200 per player. Variable cost per player is $150, and fixed costs amount to $250,000 per year. The rm pays a tax rate of 30%. The company's assets, valued at $600,000, are nanced by 60% debt and 40% equity, with the latter in the form of 1,000 ordinary shares (no preference shares issued). The firm pays annual interest of 9% on its debt nancing. (a) Calculate the annual break-even volume of MP3 player sales. (b) Calculate the rm's earnings before interest and taxes (311) and earnings per share (EPS) at sales volumes of 6,000, 7,500 and 9,000 players. (c) Calculate the rm's degree of operating leverage (DOL), degree of nancial leverage (DFL) and degree of total leverage (DTL) at a volume of sales of 7,500 players. (Round your answers to 2 decimal places)

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