Solved

Given a Net Income of $50,000, Sales of $2,000,000, Variable

Question 41

Short Answer

Given a net income of $50,000, sales of $2,000,000, variable costs of $25,000, fixed operating costs of $175,000, price per unit of $5.00, interest expense of $20,000, and EBIT of $1,800,000:
a. calculate DOL
b. calculate DFL
c. calculate DCL

Correct Answer:

verifed

Verified

a. ($2,000,000 - $25,000)/($2,...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents