Question
Trident Food Corporation has generated the following income statement for the most recent fiscal year ended December 31, 2015: Sales revenues 150,000 $ Variable selling
Trident Food Corporation has generated the following income statement for the most recent fiscal year ended December 31, 2015:
Sales revenues | 150,000 $ |
Variable selling cost | (112,500) |
Gross profit | 37,500 |
Fixed operating costs | (24,000) |
Net operating income (EBIT) | 13,500 |
Faiz | (10,000) |
pre-tax profit | 3,500 |
Taxes (40%) | (1,400) |
Net income | 2,100 |
The selling price of each inventory item Trident Foods produces is $20.
What is the operating leverage rating, financing leverage rating, and overall leverage rating for Trident Foods?
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Advanced Financial Accounting
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