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Progressive Company has the following income statement for 2018: Sales Variable operating costs Fixed operating costs $6,000,000 1,000,000 2,000,000 EBIT Interest 3,000,000 500,000 EBT Tax
Progressive Company has the following income statement for 2018: Sales Variable operating costs Fixed operating costs $6,000,000 1,000,000 2,000,000 EBIT Interest 3,000,000 500,000 EBT Tax (at 40%) 2,500,000 1,000,000 EAT Preferred dividends 1,500,000 300,000 Earnings available to stockholders 1,200,000 Shares outstanding 400,000 1.) Compute Progressive's DOL (3 points). 2.) Compute Progressive's DFL (3 points). 3.) Compute Progressive's DCL (2 points). 4.) If sales increase to $7,000,000, what is the forecasted EPS
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