Question: Help with chapter 12 letter f, please! Integrative Multiple leverage measures and prediction Carolina Fastener, Inc., makes a patented marine bulkhead latch that wholesales for
Help with chapter 12 letter f, please!
Integrative Multiple leverage measures and prediction Carolina Fastener, Inc., makes a patented marine bulkhead latch that wholesales for $6.25. Each latch has variable operating costs of $3.45. Fixed operating sts are $49, 100 per year. The n pays $12,400 terest and preferred dividends o S6 20 per year. At this pon the m sseling 30 000 at hes per year and staxe at arate f40% a. Calculate Carolina Fastener's operating breakeven point. b. On the basis of the firm's current sales of 30,000 units per year and its interest and preferred dividend costs, calculate its EBIT and eamings available for common stockholders (EACS). c. Calculate the firm's degree of operating leverage (DOL). d. Calculate the firm's degree of financial leverage (DFL). e. Calculate the firm's degree of total leverage (DTL) f. Carolina Fastener has entered into a contract to produce and sell an additional 15,500 latches in the coming year. Use the DOL, DFL, and DTL to predict and calculate the changes in EBIT and earnings available for common. Check your work by a simple calculation of Carolina Fastener's EBIT and earnings available for common, using the basic information given. Preferred stock dividend 6,200 7,300 EACS c. The degree of operating leverage is 2.407. (Round to three decimal places.) d. The degree of financial leverage is 2.868. (Round to three decimal places.) e. The degree of total leverage is 6.903. (Round to three decimal places.) f. Carolina Fastener has entered into a contract to produce and sel an additional 15,5 latches he coming year; the percentage change in sales wil be 12.000 % Round to three decimal places
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