1. Following is the most recent income statement for XYZ CO. It has no preferred stock. Number common stock outstanding is 1000. Sales 30,000 units @Taka 20 Variable costs (40%) of sales GP (Gross profit) FC 80,000 EBIT Interest expense (Bank loan of Taka 200, 000 with 10% annual interest expense Taxable Income (EBT) Taxes (40%) Net Income Assume that sales have increased by 40%. Using the information, calculate the DOL, DFL, and DTL.
1. Following is the most recent income statement for XYZ CO. It has no preferred stock. Number common stock outstanding is 1000. Sales 30,000 units @Taka 20 Variable costs (40%) of sales GP (Gross profit) FC 80,000 EBIT Interest expense (Bank loan of Taka 200, 000 with 10% annual interest expense Taxable Income (EBT) Taxes (40%) Net Income Assume that sales have increased by 40%. Using the information, calculate the DOL, DFL, and DTL.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Everything is given in this picture. Please answer the math correctly. You need to Answer "DOL, DFL, DTL''
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