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) Compute the break-even point in units (number of skates).