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Compute the operating profit margin

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Reference no: EM132651237

Output level  130,000 units Assets  $ 7,500,000 Asset turnover  9 times 

Operating return on assets (OROA)  45 percent 

Degree of operating leverage = Gross profits / EBIT  8 times

Interest expense  $ 670,000

Marginal tax rate  28 percent

  1. Compute the operating profit margin.
  2. Compute sales revenue.
  3. Compute EBIT.
  4. Compute revenue before fixed costs (gross profits).
  5. Compute total variable costs.
  6. Compute total fixed costs.
  7. Compute the selling price per unit.
  8. Compute the variable cost per unit.

Reference no: EM132651237

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