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What level of sales would the firm break even on operations

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Question - Farma most recently sold 40000 units (JD400000 sales revenue) it is variable operating costs are JD280000 and its fixed operating cost are JD20000. Annual interest charges total JD10000 and the firm has 4000 shares of JD2 preferred stock outstanding. It currently has 20000 shares of common stock outstanding. Assume that the firm has a 40% tax rate.

What level of sales would the firm break even on operations?

Calculate the firm's degree of total leverage (DTL).

Calculate the firm's degree of financial leverage (DFL).

Calculate the firm's degree of operating leverage (DOL).

Find the earnings per share (EPS).

Reference no: EM133021217

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