Use the following to answer questions 3-4: Sales (30,000 units) $150,000 Variable Costs $100,800 Contributions Margin...
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Use the following to answer questions 3-4: Sales (30,000 units) $150,000 Variable Costs $100,800 Contributions Margin $49,200 Fixed Manufacturing Costs $24,000 Operating Income $25,200 Interest $18.000 Earnings Before Taxes $7,200 Taxes (30%) $2,160 Net Income $5,040 Shares Outstanding 600 3. The firm's cash break-even point is: a. 4,800 units. b. 14,634 units. c. 7,142 units. d. 18,000 units. 4. The Degree of Operating Leverage (DOL) is: a. 1.58X. b. 1.95X. c. 3.50X. d. 1.40X. Use the following to answer questions 3-4: Sales (30,000 units) $150,000 Variable Costs $100,800 Contributions Margin $49,200 Fixed Manufacturing Costs $24,000 Operating Income $25,200 Interest $18.000 Earnings Before Taxes $7,200 Taxes (30%) $2,160 Net Income $5,040 Shares Outstanding 600 3. The firm's cash break-even point is: a. 4,800 units. b. 14,634 units. c. 7,142 units. d. 18,000 units. 4. The Degree of Operating Leverage (DOL) is: a. 1.58X. b. 1.95X. c. 3.50X. d. 1.40X.
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