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Use the table below: (Fill up the gaps first) Production Volume 250,000 300,000 Price per unit 65 65 Sales 16,250,000 19,500,000 Variable Cost 60% 9.750,000
Use the table below: (Fill up the gaps first)
Production Volume | 250,000 | 300,000 | ||
Price per unit | 65 | 65 | ||
Sales | 16,250,000 | 19,500,000 | ||
Variable Cost 60% | 9.750,000 | 11,700,000 | ||
Gross Profit | ||||
Fixed costs and Depreciation | 1,600,000 | 1,600,000 | ||
EBIT | 6,200,000 | |||
Interest | 1,400,000 | 1,400,000 | ||
Profit Before Taxes | ||||
Tax 35% | ||||
Net Income | ||||
Number of shares | 500,000 | 500,000 | ||
EPS ? (At least two decimals)
|
(Interpretation needed.)
(a) Compute the Degree of Operating Leverage.
(b) Compute the Degree of Financial Leverage.
(c) Compute the Degree of Total Leverage
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