Question: Calculate Financial Leverage based on the following: Electronics R Us 2020 2021 Sales (Net Revenues) $543,375 $586,845 Total variable costs $350,150 $380,500 Total fixed costs
Calculate Financial Leverage based on the following: Electronics R Us 2020 2021 Sales (Net Revenues) $543,375 $586,845 Total variable costs $350,150 $380,500 Total fixed costs $145,800 $147,050 EBIT $47,425 $59,295 Interest Expense $21,150 $21150 Taxable Income $26,275 $38,145 Taxes (22%) $5,781 $8,392 Net Income $20,494 $29,753 Common Shares Outstanding 250 250 Your answer may vary by up to 0.03 due to rounding. Select one: O a. 1.08 O b. 2.25 O c. 1.28 O d. 1.80 O e. 3.13
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