ACME, Inc. reported the following income statement for 2022. Sales is 3,500,000 dollar Variable Costs is 1,000,000

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ACME, Inc. reported the following income statement for 2022.

Sales is 3,500,000 dollar

Variable Costs is 1,000,000 dollar

Fixed Operating Costs is 700,000 dollar

EBIT is 1,800,000

Interest Expense is 200,000 dollar

EBT is 1,600,000 dollar

Taxes (%30) is 480,000 dollar

Net Income is 1,120,000 dollar

Earnings Per Share is 1,12 dollar

Calculate the operating leverage, financial leverage and total leverage.

If Acmes's sales increase by %10, Acme's Ebit will increase by %?

Related Book For answer-question

Contemporary Financial Management

ISBN: 978-1337090582

14th edition

Authors: R. Charles Moyer, James R. McGuigan, Ramesh P. Rao

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Posted Date: Jun 10, 2023 11:18 AM

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ACME, Inc. reported the following income statement for 2022. Sales is 3,500,000 dollar Variable Costs is 1,000,000

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To calculate the operating leverage we need to determine the contribution margin ratio CMR which is ... View the full answer

Contemporary Financial Management

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