Question
Problem Set Question 1: The following information pertains to the Strawberry Shortcake Bhd chain: Sales600000Variable Costs200000Total Contribution Margin400000Fixed Costs150000EBIT250000Interest Expenses50000Earnings before Taxes200000Taxes (30%)60000Net Income140000 Required:
Problem Set
Question 1:
The following information pertains to the Strawberry Shortcake Bhd chain:
Sales600000Variable Costs200000Total Contribution Margin400000Fixed Costs150000EBIT250000Interest Expenses50000Earnings before Taxes200000Taxes (30%)60000Net Income140000
Required:
a. What is the BEP(RM) for Strawberry Shortcake Bhd?
b. Calculate the degree of operating leverage at this level of output for Strawberry Shortcake Bhd.
c. Calculate the degree of financial leverage at this level of output for Strawberry Shortcake Bhd.
d. What is the combined leverage for Strawberry Shortcake Bhd?
e. If sales increase by 20%, what is the percentage increase in EBIT?
f. If sales increase by 10%, what will be Strawberry Shortcake Bhds EPS if the firm has 50,000 shares outstanding?
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Fixed Income Securities Tools For Todays Markets
Authors: Bruce Tuckman, Angel Serrat
4th Edition
1119835550, 978-1119835554
