Jerry's Dog Food, Inc. is a dog food wholesaler located in Greenwich, Connecticut. Selected financial statement values for Jerry's are shown in the table below. What is the degree of total leverage for Jerry's given the change in revenues from Year 1 to Year 2? $$\begin{array} { | c | c | c | }
\hline \begin{array} { c }
\text { Jerry's Dog } \
\text { Food Inc. }
\end{array} & & \
\hline & \text { Year 1 } & \text { Year 2 } \
\hline \text { Sales } & \$ 170,000 & \$ 185,000 \
\hline \text { EBIT } & 18,000 & 20,500 \
\hline \text { EPS } & 5.3810 & 6.2857 \
\hline
\end{array}$$

Question

Jerry's Dog Food, Inc. is a dog food wholesaler located in Greenwich, Connecticut. Selected financial statement values for Jerry's are shown in the table below. What is the degree of total leverage for Jerry's given the change in revenues from Year 1 to Year 2? $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Jerry's Dog } \
\text { Food Inc. }
\end{array} & & \
\hline & \text { Year 1 } & \text { Year 2 } \
\hline \text { Sales } & \$ 170,000 & \$ 185,000 \
\hline \text { EBIT } & 18,000 & 20,500 \
\hline \text { EPS } & 5.3810 & 6.2857 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of Jerry's Dog Food, Inc. is a dog food wholesaler located in Greenwich, Connecticut. Selected financial statement values for Jerry's are shown in the table below. What is the degree of total leverage for Jerry's given the change in revenues from Year 1 to Year 2? $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Jerry's Dog } \
\text { Food Inc. }
\end{array} & & \
\hline & \text { Year 1 } & \text { Year 2 } \
\hline \text { Sales } & \$ 170,000 & \$ 185,000 \
\hline \text { EBIT } & 18,000 & 20,500 \
\hline \text { EPS } & 5.3810 & 6.2857 \
\hline
\end{array}$$

Jerry's Dog Food, Inc A)099 B)1

Jerry's Dog Food, Inc A)099
B)1