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Wayne Enterprises has the following modified income statement ($000) at 100,000 units of production. Revenue $16,000 Variable Cost 6,100 Fixed Cost 8600 EBIT $1,300 Interest(@10%)
Wayne Enterprises has the following modified income statement ($000) at 100,000 units of production.
Revenue | $16,000 |
Variable Cost | 6,100 |
Fixed Cost | 8600 |
EBIT | $1,300 |
Interest(@10%) | 500 |
EBT | $800 |
Tax (@40%) | 320 |
EAT | $480 |
Number of shares | 20,000 |
- What are Wayne Enterprise's contribution margin and dollar breakeven point? Enter your contribution margin answer in decimals and not in percentage. Enter your break-even sales answer in whole dollars, without "$". For example, an answer of $1 thousand should be entered as 1000, not 1. Do not round intermediate calculations.
CM (to two decimal places) SB/E (to the nearest dollar) $ - Calculate Wayne Enterprise's current DFL, DOL, and DTL. Round the answers to two decimal places. Do not round intermediate calculations.
DFL DOL DTL - Calculate the current EPS and estimate what it would become if sales declined by 25%. Use the DTL first and then recalculate the modified income statement. (Assume a negative EBT generates a negative tax.) Round your answers to two decimal places. Use a minus sign to indicate a negative answer and do not include "$". Do not round intermediate calculations.
EPS (using DTL) $ EPS (using modified income statement) $
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