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Kross Ltd, a company that sells bicycles, had sales last month of Rs 40,000, EBIT of Rs 4,000, net income of Rs 1800, an interest
Kross Ltd, a company that sells bicycles, had sales last month of Rs 40,000, EBIT of Rs 4,000, net income of Rs 1800, an interest expense of Rs 1000, and earnings per share (EPS) of Rs 1.8. The DOL was 6.0. Sales for the coming month are expected to be Rs. 44,000. a) Calculate DFL and DCL. b) What was the profit before taxes last month? c) What is the profit before taxes expected to be for the coming month? d) What is the EPS expected to be for the coming month?
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