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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Everything is given in this picture. Please answer the math correctly. You need to Answer "DOL, DFL, 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.
Transcribed Image Text: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.
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