Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Use the following to answer questions 3-4: Sales (30,000 units) $150,000 Variable Costs $100,800 Contributions Margin $49,200 Fixed Manufacturing Costs $24,000 Operating Income $25,200
Use the following to answer questions 3-4: Sales (30,000 units) $150,000 Variable Costs $100,800 Contributions Margin $49,200 Fixed Manufacturing Costs $24,000 Operating Income $25,200 Interest $18.000 Earnings Before Taxes $7,200 Taxes (30%) $2,160 Net Income $5,040 Shares Outstanding 600 3. The firm's cash break-even point is: a. 4,800 units. b. 14,634 units. c. 7,142 units. d. 18,000 units. 4. The Degree of Operating Leverage (DOL) is: a. 1.58X. b. 1.95X. c. 3.50X. d. 1.40X.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
15th edition
77861612, 1259194078, 978-0077861612, 978-1259194078
