Kapoor Enterprises is examining its cost structure and has asked you to perform an analysis.

You are given the below income statement:

Kapoor Enterprises
Income Statement
For the Year Ended December 31, 2020
Sales	$ 2,800,0002,800,000
Variable costs	1,428,0001,428,000
Contribution margin	1,372,0001,372,000
Fixed operating expenses	343,000343,000
Earnings before interest and taxes	1,029,0001,029,000
Interest expense	188,000188,000
Earnings before taxes	841,000841,000
Taxes	252,300252,300
Net income	$ 588,700588,700

The company's selling price is $7070 per unit.

1. What is the contribution margin ratio? Answer: Answer

Round to 2 decimal places (e.g. .95). Please do NOT convert your answer to a percent.

2. What is the break even in units (assume interest is also a fixed cost)? Answer: Answer

units Round to nearest whole number (e.g. 1,355)

3. The company is thinking of engaging in a new marketing program at a fixed cost of $45,000. How much in additional sales dollars would they need to earn to cover the cost of the marketing program? $Answer

Round to nearest whole number (e.g. 1,355)

4. What is the company's operating leverage? Answer

Round to 2 decimal places (e.g. 4.25).

5. What is the company's financial leverage? Answer

Round to 2 decimal places (e.g. 4.25).

6. What is the company's combined leverage? Answer

Round to 2 decimal places (e.g. 4.25).

7. If sales increased by 1414%, estimate what their new EAT would be. Answer

Round to nearest whole number (e.g. 1,355)