Assume the following information pertains to Zigler Corporation:Sales$1,000,000Total Variable Costs (40% of sales)400,000Fixed CostsEBITInterest ExpenseEBTTaxes (21%)EAT#shares outstandingEPS300,000300,000100,000200,00042,000158,000100,000$1.58Determine EPS if sales increase to $1,200,000. Then determine the DOL, the DFL, and the DCL.

FormulasEPS = EAT/ Shares OutstandingDOL= Contribution Margin/ EBITDFL-= EBIT/EATDCL=Contribution…

Answered: Fixed Costs EBIT Interest Expense EBT…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Fixed Costs EBIT Interest Expense EBT Taxes (21%) EAT #shares outstanding EPS 300,00 300,000 100,000 200,000 42,000 158,000 100,000 $1.58 Determine EPS if sales increase to $1,200,000. Then determine