Calculate the earnings after interest for each company

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Reference no: EM131020972

1. Smith Company and Jones Company each sell 12,000 bottles at $ 3.00 per bottle. Production costs are $9,000 fixed costs plus $1 per bottle. Calculate the operating income (EBIT) for both companies.

2. Using the information in Exercise 1, calculate the earnings after interest for each company.

Reference no: EM131020972

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