Given the following financial data for Cosmos, compute the firm's degree of combined leverage. $$\begin{array} { l r r }
& \underline { 2010 } & \underline { 2011 } \
\text { Sales } & \$ 780,000 & \$ 874,000 \
\text { Fixed costs } & 195,000 & 218,500 \
\text { Variable costs } & 460,200 & \underline { 524,400 } \
\text { EBIT } & 124,800 & 131,100 \
\text { Interest } & 46,800 & 52,400 \
\text { EPS } & \$ 0.42 & \$ 0.51
\end{array}$$
A) $0.42
B) 8.37
C) -2.15
D) 1.78

Question

Given the following financial data for Cosmos, compute the firm's degree of combined leverage. $$\begin{array} { l r r } 
& \underline { 2010 } & \underline { 2011 } \
\text { Sales } & \$ 780,000 & \$ 874,000 \
\text { Fixed costs } & 195,000 & 218,500 \
\text { Variable costs } & 460,200 & \underline { 524,400 } \
\text { EBIT } & 124,800 & 131,100 \
\text { Interest } & 46,800 & 52,400 \
\text { EPS } & \$ 0.42 & \$ 0.51
\end{array}$$
A) $0.42
B) 8.37
C) -2.15
D) 1.78

Quizplus · Accepted Answer

The Answer of Given the following financial data for Cosmos, compute the firm's degree of combined leverage. $$\begin{array} { l r r } 
& \underline { 2010 } & \underline { 2011 } \
\text { Sales } & \$ 780,000 & \$ 874,000 \
\text { Fixed costs } & 195,000 & 218,500 \
\text { Variable costs } & 460,200 & \underline { 524,400 } \
\text { EBIT } & 124,800 & 131,100 \
\text { Interest } & 46,800 & 52,400 \
\text { EPS } & \$ 0.42 & \$ 0.51
\end{array}$$
A) $0.42
B) 8.37
C) -2.15
D) 1.78

Given the Following Financial Data for Cosmos, Compute the Firm's