Calculate the degree of total leverage (DTL) and break-even point for a company, given the following information: sales are $400,088; variable cost is $120,000; net income is $180,000; tax rate (T) is 35 percent; fixed cost is $80,000.
For GG. Co., calculate the degree of total leverage (DTL) and break-even point of sales at which the firm covers all its operating and fixed costs, given the following information: sales are $5,050,000; variable cost is $1,850,000; net income is $685,750; tax rate (T) is 35 percent; and fixed cost is $2,100,000.