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Please help me solve! Beachcomber Treasures has determined that its degree of operating leverage (DOL) is 3.4 and its degree of financial leverage (DFL) is
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Beachcomber Treasures has determined that its degree of operating leverage (DOL) is 3.4 and its degree of financial leverage (DFL) is 2.0 . Beachcomber forecasts EBIT will be $600,000 next year and net income will be $240,000. a. What is Beachcomber's degree of total leverage (DTL)? Round your answer to one decimal place. b. If next year's sales are 5 percent lower than forecasted, what will be Beachcomber's actual (i) EBIT and (ii) net income? The firm has no preferred stock. Do not round intermediate calculations. Round your answers to the nearest dollar. Actual EBIT: \$ Actual net income: \$Step by Step Solution
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