Chapter 10b

Chapter 10b - Chapter 10b 1. Pirates Inc. has an EBT of...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 10b 1. Pirates Inc. has an EBT of $190 and Interest Expense of $10. What is the Pirates Inc’s DFL? 2. Assuming Pirates has a DOL of 2.3 and a revenue increase in 3%, how much of an increase will occur in Net Income? 3. Rush Inc. recently released the Following data(use to answer 3-6): Sales $15,000,000 COGS $9,000,000 Operating Expenses $2,000,000 Interest Expense $1,300,000 Tax Rate 34% What will Rush's increase in EBIT be if Sales increase by 1.5%? 4. What will Rush’s resulting increase in NI be? 5. What is Rush’s DCL? 6. Assume Rush Inc. projected a 3.5% increase in sales and had a DCL of 1.9. What would the projected Net Income be under these circumstances? 7. ALT Co. has $250 in annual fixed costs and $0.30 variable cost per unit. If each unit is sold for $1.15, what is the ALT’s breakeven point? 8. Which of the following is NOT a type of operating leverage? a. Property Tax b. Rent c. Preferred Stock d. Administrative Salaries 9. Abdul Inc. discovers it will reach break-even
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/23/2011 for the course BUS M 301 taught by Professor Jimbrau during the Fall '11 term at BYU.

Page1 / 3

Chapter 10b - Chapter 10b 1. Pirates Inc. has an EBT of...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online