Firm break-even point in sales dollars


"Output level 120,000 Units

Operating assets $6,000,000

Operating asset turnover 12 times

Return on operating assets 48%

Degree of operating leverage 10 times

Interest expense $720,000

Tax 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

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Finance Basics: Firm break-even point in sales dollars
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