( 4 0 points ) . Salida Industries sells its finished product for $ 1 2 per...
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Question:
points Salida Industries sells its finished product for $ per unit. Its fixed operating costs are $ and the variable operating cost per unit is $
Calculate the firms earnings before interest and taxes EBIT for sales of units. points
Calculate the firms EBIT for sales of units. points
Calculate the percentage changes in sales from the unit base level and associated percentage changes in EBIT for a shift in sales indicated in part b points
Calculate the Degree of Operating Leverage DOL points
On the basis of your findings in part d comment on the sensitivity of changes in EBIT in response to changes in sales. Support your statement with numbers. points
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