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You have developed the following analytical income statement for your corporation. It represents the most recent year's operations, which ended yesterday. You are now asked
You have developed the following analytical income statement for your corporation. It represents the most recent year's operations, which ended yesterday. You are now asked to answer the following questions: a. At this level of output, what's the degree of operating leverage? b. What's the degree of financial leverage? c. What's the degree of combined leverage? d. What's the firm's break-even point in sales dollars? e. What's should increase by 30%, by what percent would earnings before taxes (and net income) increase? f. Prepare an analytical income statement that verifies the calculations from part (e)
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