sales(10,000 skates@50$ each) $500.00 less(varible costs(10,000 skates at $20.00) fixed cost..................................$150,000 earnings before intrest and taxes $150,000 interest expense...........................$ 60,000 earnings before taxes $90,000 income tax expense(40%) $36,000 earnings after taxes $54,000 given this income statement compute the following Degree of operating leverage Degree of financial leverage Degree of combined leverege Break even point in units ( number of skates) Can anyone help me? I don't understand this. please!!!!!
I figured that if I used a sensible title nobody would even look at what I was asking. I guess I was just trying to get anybodys attention.
Anyone know what: means? If 10,000 * $50 = $500, then I'm a chinaman. If that's 5 cents, then where's this 150k profit come from? Am I ridiculously ignorant?
http://210.210.18.114/EnlightenmentorAreas/finance/CFA/leverage.htm http://www.bizbound.com/breakeven.htm
