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The following information outlines the projected operating results for Castalon, a catalog printer. Sales of $5.0 million. Variable Costs at 40% of sales. Fixed Costs

The following information outlines the projected operating results for Castalon, a catalog printer.
  • Sales of $5.0 million.
  •  Variable Costs at 40% of sales. 
  • Fixed Costs of $1.0 million. 
  • Debt interest payments on $1.5 million issued with an annual 7.0% coupon (current yield is 8.0%). 
  • Tax Rate of 0.0%. 

Calculate Castalon' s DOL, DFL and DTL

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