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Problem 14-16 The Spitfire Model Airplane Company has the following modified income statement (5000) at 100,000 units of production Revenue $14,000 Variable Cost 6,100 Fixed

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Problem 14-16 The Spitfire Model Airplane Company has the following modified income statement (5000) at 100,000 units of production Revenue $14,000 Variable Cost 6,100 Fixed Cost 6600 EBIT $1,300 Interest(10%) 500 EBT $800 Tax (40%) 320 3480 Number of shares 20,000 a. What are Spitfire's contribution margin and dollar breakeven point? Enter your contribution margin answer in decimals and not in percentage. Enter your break-even sales answer in whole dollars. For example, an answer of $1 thousand should be entered as 1,000, not 1. Do not round intermediate calculations Cot (to two decimal places) Sure to the nearest dollar) 5 b. Calculate Spitfire's current DFL DOL and DTL Round the answers to two decimal places. Do not round Intermediate calculations DFL DOL DTL Carulate the current and actimate what it would herme falderlined hvite the first and then recall the monitorinne Wevious Check My Work eBook ING EBIT $1,300 Interest(10%) 500 EBT $800 Tax (40%) 320 EAT $480 Number of shares 20,000 a. What are Spitfire's contribution margin and dollar breakeven point? Enter your contribution margin answer in decimals and not in percentage. Enter Your break-even sales answer in whole dollars. For example, an answer of $1 thousand should be entered as 1,000, not 1. Do not round intermediate calculations Ci to two decimal places) Swe(to the nearest dollar) $ b. Calculate Spitfire's current DFL, DOL, and DTL. Round the answers to two decimal places. Do not round intermediate calculations, DFL DOL DTL c. Calculate the current EPS and estimate what it would become if sales declined by 25%. Use the DTL first and then recalculate the modified Income statement. Assume a negative EBT generates a negative tax.) Round your answers to two decimal places. Use a minus sign to indicate a negative answer. Do not round intermediate calculations, EPS (using DTL) 5 EPS (using modified Income statement) $ Check My Work

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