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Output level 120,000 Units Operating assets $6,000,000 Operating asset turnover 12 times Return on operating assets 48% Degree of operating leverage
Output level 120,000 UnitsOperating assets $6,000,000Operating asset turnover 12 timesReturn on operating assets 48%Degree of operating leverage 10 timesInterest expense $720,000Tax rate 42%What is the firm’s break-even point in sales dollars, If sales should increase by 40% by what percentage would EBT and net income increase, prepare another income statement to verify the calculations