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TB 05-101 A new restaurant is ready to open for busine... 18 8 OLSS32 A new restaurant is ready to open for business. It is

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TB 05-101 A new restaurant is ready to open for busine... 18 8 OLSS32 A new restaurant is ready to open for business. It is estimated that the food cost variable cout) will be 40% of sales, while the contebe 60.000 here sales estimates are $1.250,000. The cost to start up this restaurant will be $2.000.000. Two financing alternatives are being considered 50% debt at 12% or (b) all equity financing Common stock can be sold at $5 per share A) Compute break even point, B) Compute DOL C) Compute DFL and DCL for both financing plans D) Include an explanation of what your computations mean Short Answer Toolbation iti > N 2 Igs F

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