PROBLEM 12-2
LEVERAGE ANALYSIS
DATA
Sales		50,439,375
Variable Costs		25,137,000
Revenue before fixed costs		25,302,375
Fixed Costs		10,143,000
EBIT		15,159,375
Interest expense		1,488,375
EBT		13,671,000
Taxes (@ 21%)		2,870,910
Net Income
Operating leverage =
Financial leverage =
Combined leverage =
A)
Breakeven point =
B)
Sales increase		30%
% of Earnings increase =