What is the firms break-even point in sales dollars if, Ask an Expert

Accounting

Output level 120,000 Units
Operating assets $6,000,000
Operating asset turnover 12 times
Return on operating assets 48%
Degree of operating leverage 10 times
Interest expense $720,000
Tax rate 42%

What is the firm's break-even point in sales dollars, If sales should increase by 40% by what percentage would EBT and net income increase, prepare another income statement to verify the calculations.

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M990059

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - pandora pillow companys planned production for

Question - Pandora Pillow Company's planned production for the year just ended was 10,000 units. This production level was achieved, but only 9,000 units were sold. Other data follow: Direct material used$40,000 Direct l ...

Question - on january 1 year 1 homeland entity he signed a

Question - On January 1, year 1, Homeland Entity (HE) signed a 20-year lease contract for an office building. The lease contract calls for HE to make payments of $10,000 at the beginning of each year, with the first paym ...

Question - on december 31 2017 cheyenne company signed a

Question - On December 31, 2017, Cheyenne Company signed a $1,054,800 note to Ayayai Bank. The market interest rate at that time was 11%. The stated interest rate on the note was 9%, payable annually. The note matures in ...

Question - white mountain sled company manufactured 3000

Question - White Mountain Sled Company manufactured 3,000 childen's snow sleds during November. The following variable overhead data relates to November: Budgeted variable overhead cost per unit $12.00 Actual variable ma ...

Question - on january 1 2017 palka inc acquired 70 percent

Question - On January 1, 2017, Palka, Inc., acquired 70 percent of the outstanding shares of Sellinger Company for $1,479,800 in cash. The price paid was proportionate to Sellinger's total fair value, although at the acq ...

Question - on january 1 2017 bonita corporation purchased

Question - On January 1, 2017, Bonita Corporation purchased 325 of the $1,000 face value, 9%, 10-year bonds of Walters Inc. The bonds mature on January 1, 2027, and pay interest annually beginning January 1, 2018. Bonita ...

Question - mark and patricia report adjusted gross income

Question - Mark and Patricia report adjusted gross income of $410,000 and itemized deductions of $31,000 for the interest on their home acquisition mortgage (principal amount of $890,000 acquired in 2015), $14,000 in sta ...

Question - f l wright architects incorporated as licensed

Question - F. L. Wright Architects incorporated as licensed architects on September 1, 2018. During the first month of the operation of the business, these events and transactions occurred: Sept. 1 Stockholders invested ...

Question - jozy altidore invested 6000 at 5 annual interest

Question - Jozy Altidore invested $6,000 at 5% annual interest, and left the money invested without withdrawing any of the interest for 12 years. At the end of the 12 years, Jozy withdrew the accumulated amount of money. ...

Question - during 2017 crimson inc purchased 2775000 of

Question - During 2017, Crimson Inc. purchased $2,775,000 of inventory. The cost of goods sold for 2017 was $2,635,938 and the ending inventory at December 31, 2017 was $544,688. What was the inventory turnover for 2017?

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert