(4*2 = 8 points) Safthar Sports Gere Company LTD. Produces and sells Football jerseys for the...
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(4*2 = 8 points) Safthar Sports Gere Company LTD. Produces and sells Football jerseys for the local market. The pertinent information for selling 4,000 jerseys a year are as follows. Sales revenue ......... Variable costs... Fixed operating costs **** Loans at 8 percent interest per year Tax rate HYP**** RE Preferred stock at 6 percent annual dividend. Number of shares of common stock outstanding... ****** ***** Tk. 1,400,00 980,000 315,000 1,250,000 40% 1,000,000 20,000 a. How many jerseys must Safthar sell to break even with respect to operating income? b. What is Safther's degree of operating leverage at the current sales level? C. How many jerseys must Safther sell in order to level with its financial breakeven point? d. What is Safther's degree of financial leverage? (4*2 = 8 points) Safthar Sports Gere Company LTD. Produces and sells Football jerseys for the local market. The pertinent information for selling 4,000 jerseys a year are as follows. Sales revenue ......... Variable costs... Fixed operating costs **** Loans at 8 percent interest per year Tax rate HYP**** RE Preferred stock at 6 percent annual dividend. Number of shares of common stock outstanding... ****** ***** Tk. 1,400,00 980,000 315,000 1,250,000 40% 1,000,000 20,000 a. How many jerseys must Safthar sell to break even with respect to operating income? b. What is Safther's degree of operating leverage at the current sales level? C. How many jerseys must Safther sell in order to level with its financial breakeven point? d. What is Safther's degree of financial leverage?
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The detailed answer for the above question is provided below A 8000 jerseys B 40 C 10000 jer... View the full answer
Related Book For
Financial Accounting A User Perspective
ISBN: 978-0470676608
6th Canadian Edition
Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry
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