Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

what is sleek's DOL (degree of operating leverage)? 4.0 2.2 1.2 3.3 Sleek, Inc. manufactures and sells skateboards. The company's income statement for 2021 is

image text in transcribed

what is sleek's DOL (degree of operating leverage)? 4.0 2.2 1.2 3.3

Sleek, Inc. manufactures and sells skateboards. The company's income statement for 2021 is as follows: Sales (10,500 boards @ $60 each).. $630,000 Less: Variable costs (10,500 boards at $25) 262,500 Fixed costs.. 200,000 Earnings before interest and taxes (EBIT). 167,500 Interest expense.. 62.500 Earnings before taxes (EBT). 105,000 Income tax expense (30%). 31500 Earnings after taxes (EAT). $ 73,500 What is Sleek's DOL (degree of operating leverage)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Finance Turning Money into Wealth

Authors: Arthur J. Keown

7th edition

978-0133856507, 013385650X, 133856437, 978-0133856439

More Books

Students also viewed these Finance questions

Question

2. Comment on the effectiveness of the colleges backup strategy.

Answered: 1 week ago