Question: PROBLEM 12-2 LEVERAGE ANALYSIS DATA Sales 50,439,375 Variable Costs 25,137,000 Revenue before fixed costs 25,302,375 Fixed Costs 10,143,000 EBIT 15,159,375 Interest expense 1,488,375 EBT 13,671,000
| PROBLEM 12-2 | |||
| LEVERAGE ANALYSIS | |||
| DATA | |||
| Sales | 50,439,375 | ||
| Variable Costs | 25,137,000 | ||
| Revenue before fixed costs | 25,302,375 | ||
| Fixed Costs | 10,143,000 | ||
| EBIT | 15,159,375 | ||
| Interest expense | 1,488,375 | ||
| EBT | 13,671,000 | ||
| Taxes (@ 21%) | 2,870,910 | ||
| Net Income | |||
| Operating leverage = | |||
| Financial leverage = | |||
| Combined leverage = | |||
| A) | |||
| Breakeven point = | |||
| B) | |||
| Sales increase | 30% | ||
| % of Earnings increase = |
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