Analysts have evaluated the sivar silver company and, Ask an Expert

Accounting

Analysts have evaluated the Sivar Silver Company and discovered that if sales are $800,000, the following will exist:

Degree of operating leverage (DOL) 4.0x
Degree of financial leverage (DFL) 2.0x
Earnings before interest and taxes (EBIT) $50,000
Earnings per share (EPS) $4.00

According to this information, what will Sivar's EBIT be if sales actually turn out to be $720,000 rather than $8000,000?

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M9682453

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