Allied Biscuit Co. forecasts the following income statement for the next year:

Income Statement For the Year Ended on December 31

Net sales	$960,000
Less: Variable costs	532,000
Less: Fixed costs	167,000
EBIT, or NOI	$261,000
Less: Interest	141,000
EBT	$120,000
Less: Taxes	48,000
Net income	$72,000

Allied Biscuit Co. uses no preferred stock in its capital structure. Click on the following lines and calculate the degrees of operating, financial, and total leverage for Allied Biscuit Co.

DOL	1. A 1.39 B. 1.64 C. 1.44 D. 1.69 E 1.57
DFL	2. A 2.07 B.2.50 C 2.86 D 2.33 E 2.68 F 2.18 G 1.93
DTL	3 A 3.66 B 3.75 C 3.42 D 3.86 E 3.51 F 3.57 G 3.96

Answer rating: 100% (QA)

The degrees of operating financial and total leverage can be calcul... View the full answer