Expected level of ebit, What will be the expected level of

Expected level of ebit

Reference no: EM13749518

A firm has sales of $10 million, variable costs of $4 million, fixed expenses of $1.5 million, interest costs of $2 million, and a 30 percent average tax rate.

Compute its DOL, DFL, and DCL.

What will be the expected level of EBIT and net income if next year's sales rise 10 percent?

What will be the expected level of EBIT and net income if next year's sales fall 20 percent?

Reference no: EM13749518

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