How much will EBT increase

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Reference no: EM131511103

1. A firm has Fixed costs of $100,000 and Variable Costs are 60% of Sales. At what level of Sales will DOL = 2?

a) $350,000 b) $425,000 c) $500,000 d) $750,000

2. A firm has Sales of $1,000,000, Variable Costs are 60% of Sales, Fixed costs are $200,000, and Interest Expense is $50,000. If Sales increase by 10%, then how much will EBT increase?

a) 13% b) 27% c) 33% d) 40%

Reference no: EM131511103

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