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Mon 10 Oct, 2016 03:17 am
Q.5 firm's cost analysis supervisor supplies you with the following revenue and c
Sales
51200000
Variable costs
840000
Fixed operating costs
150000
Interest expenses
20000
Preferred dividend
25000
Income tax rate is 40%.
a) Calculate the firm's degree of operating, financial and combined leverages?
b) Calculate the total amount of sales if the firm wants to double it EBIT.