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P13-4 Total Leverage Sales are $80,000, EBIT = $8,000, NI = $2,400, DOL = 2.5x, and DFL = 2.0x. What will the company's Net Income
P13-4 Total Leverage Sales are $80,000, EBIT = $8,000, NI = $2,400, DOL = 2.5x, and DFL = 2.0x. What will the company's Net Income be if Sales are $88,000 rather than $80,000? DTL = DOL x DFL DTL tells us the factor by which Net Income in Sales. For example, if the DTL-3, and Sales rise by 5%, Net Income will rise by 3 x 5% = 15%. changes for a percentage change
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