Q4. What is Contribution Margin Ratio (write the definition)? Apply CMR to present how EBIT depends on Sales. Draw a graph that shows this relationship. Mark special points on this graph. Q5. a. What was the value of operating break-even sales (in $) of the corporation Alpha, if its yearly Sales was last year $200,000, total variable costs VC were $120,000, fixed operating costs FC were $40,000, Interest paid was $6,000, and it paid 20% income tax?. b. What was the value, in $, of interest break-even sales? (Sometimes "interest break-even" is called "financial break-even". "Interest break-even" takes into account Interest expense, but it does not take into account the time value of money.) Start with creating the Income statement for last year of Alpha Co. Mark these break-even points on the graph made in Q4. Q6. a. How DOL is defined? What formulas for DOL calculation you know? Calculate the value of DOL for end of the year for Alpha company in Q5. b. Apply the computed DOL value to quick calculation of predicted EBIT next year, if Sales next year would be $240,000. Present your calculation with DOL application first, and then make direct calculations creating next year Income Statement (assume the same fixed costs, interest and income tax rate). c. What are the values of DFL and DTL for end of Alpha's first year? Q7. What is ROS? Calculate its value for first year of Alpha Co. in Q5. Q8. Present the DuPont model. Apply it to Alpha Co. in Q5 (for first year data), assuming it is financed with Equity of $80,000 and Debt of $20,000. Q9. For first year financial data of Alpha calculate the Effect of Financial Leverage (EFL), and then present ROE in additive form in which EFL is shown. Compare the result with the answer for Q8. Q4. What is Contribution Margin Ratio (write the definition)? Apply CMR to present how EBIT depends on Sales. Draw a graph that shows this relationship. Mark special points on this graph. Q5. a. What was the value of operating break-even sales (in $) of the corporation Alpha, if its yearly Sales was last year $200,000, total variable costs VC were $120,000, fixed operating costs FC were $40,000, Interest paid was $6,000, and it paid 20% income tax?. b. What was the value, in $, of interest break-even sales? (Sometimes "interest break-even" is called "financial break-even". "Interest break-even" takes into account Interest expense, but it does not take into account the time value of money.) Start with creating the Income statement for last year of Alpha Co. Mark these break-even points on the graph made in Q4. Q6. a. How DOL is defined? What formulas for DOL calculation you know? Calculate the value of DOL for end of the year for Alpha company in Q5. b. Apply the computed DOL value to quick calculation of predicted EBIT next year, if Sales next year would be $240,000. Present your calculation with DOL application first, and then make direct calculations creating next year Income Statement (assume the same fixed costs, interest and income tax rate). c. What are the values of DFL and DTL for end of Alpha's first year? Q7. What is ROS? Calculate its value for first year of Alpha Co. in Q5. Q8. Present the DuPont model. Apply it to Alpha Co. in Q5 (for first year data), assuming it is financed with Equity of $80,000 and Debt of $20,000. Q9. For first year financial data of Alpha calculate the Effect of Financial Leverage (EFL), and then present ROE in additive form in which EFL is shown. Compare the result with the answer for Q8