Sales (10,500 skates @ $60 each) $ 630,000
Less: Variable costs (10,500 skates at $25) 262,500
Fixed costs 200,000
Earnings before interest and taxes (EBIT) 167,500
Interest expense 62,500
Earnings before taxes (EBT) 105,000
Income tax expense (30%) 31,500
Earnings after taxes (EAT) $ 73,500
Enter only numeric value rounded to 2 decimal places.
a) find out the degree of operating leverage.
b) find out the degree of financial leverage.
c) find out the degree of combined leverage.
d) find out the break-even point in units (number of skates).