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Question #6 (1+2+242) Shami n Nimra manufactures molds for casting aluminum allay test samples. Fixed cost is amount to $15,000 per year. Variable cost for

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Question #6 (1+2+242) Shami n Nimra manufactures molds for casting aluminum allay test samples. Fixed cost is amount to $15,000 per year. Variable cost for each unit manufactured is $15. Sales price per unit is $30 (The Company sold 2500 units in 2010 and expects to sell 3000 units in 2011). Fixed cost, variable cost per unit and sales price per unit are assumed to remain same in 2010 and 2011). The company has an interest expense of $1800 per year. Applicable income tax rate is 35 percent. Required: DOL & its Interpretation DFL & its Interpretation DCL & Interpretation

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