What should be the formula in B8? 1 Fixed Costs 800,000 2 EBIT 2,000,000 3 Earnings Before Tax 1,300,000 4 Price per Unit $65 5 Variable Cost per Unit $35 6 Tax Rate 30% 7 Preferred Dividends s Degree of Financial Leverage 90,000 1.71

What should be the formula in B8? 1 Fixed Costs 800,000 2 EBIT 2,000,000 3 Earnings Before Tax 1,300,000 4 Price per Unit $65 5 Variable Cost per Unit $35 6 Tax Rate 30% 7 Preferred Dividends s Degree of Financial Leverage 90,000 1.71

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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Question

What should be the formula in B8?
B
1 Fixed Costs
800,000
2 EBIT
2,000,000
3 Earnings Before Tax
1,300,000
4 Price per Unit
$65
5 Variable Cost per Unit
$35
6
Tax Rate
30%
7 Preferred Dividends
90,000
s Degree of Financial Leverage
1.71
+81/82-87/(1-86))
O-82/83-87/11-86)
O-82/83-87/11-B6))
83/182-87/11-863

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