Problem:
A company reports that if its sales are $80,000, EBIT,=$8,000, net income =$2,400, DOL=2.5,and DFL=2.0.
Required:
Question 1: What will the company's net income be if sales turn out to be $88,000 rather than $80,000
Question 2: What is the company's fixed operating cost?
Note: Please provide through step by step calculations.