Question: According to this information, what will Sivar's EBIT be if sales actually turn out to be $720,000 rather than $800,000? What will the EPS be?

According to this information, what will Sivar's EBIT be if sales actually turn out

to be $720,000 rather than $800,000? What will the EPS be? 8-4 Gordon's Plants has the following partial income statement for 2015:

Earnings before interest and taxes $4,500

Interest (2000)

=

Earnings before taxes $2,500

Taxes (40%) (1000)

=

Net income $1500

=

Number of common shares 1000

What is the degree of financial leverage for Gordon's? What does this value

mean?

just a study review sheet question for a test tomorrow, not using to answer for a homework.

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