Problema company reports that if its sales are 80000, Ask an Expert

Accounting

Problem:

A company reports that if its sales are $80,000, EBIT,=$8,000, net income =$2,400, DOL=2.5,and DFL=2.0.

Required:

Question 1: What will the company's net income be if sales turn out to be $88,000 rather than $80,000

Question 2: What is the company's fixed operating cost?

Note: Please provide through step by step calculations.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91170502

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