The following information relates to BRF Corporation: Sales Revenue $500 000 (10 000 units @ $50/unit) Variable costs of Operations $200 000 (10 000 @ $20/unit) Contribution Margin $300 000 Fixed Cost of Operation $200 000 Operation Income (EBIT) $100 000 Interest Expense $50 000 Earnings before Taxes (EBT) $50 000 What is BRF Corporation's degree of operating leverage (DOL)?
The following information relates to BRF Corporation: Sales Revenue $500 000 (10 000 units @ $50/unit) Variable costs of Operations $200 000 (10 000 @ $20/unit) Contribution Margin $300 000 Fixed Cost of Operation $200 000 Operation Income (EBIT) $100 000 Interest Expense $50 000 Earnings before Taxes (EBT) $50 000 What is BRF Corporation's degree of operating leverage (DOL)?
Chapter14: Capital Structure Management In Practice
Section: Chapter Questions
Problem 6P
Related questions
Question
This finance subject probl
Transcribed Image Text:The following information relates to BRF Corporation:
Sales Revenue
$500 000 (10 000 units @ $50/unit)
Variable costs of Operations $200 000 (10 000 @ $20/unit)
Contribution Margin
$300 000
Fixed Cost of Operation
$200 000
Operation Income (EBIT)
$100 000
Interest Expense
$50 000
Earnings before Taxes (EBT) $50 000
What is BRF Corporation's degree of operating leverage (DOL)?
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT