What is the companys fixed operating costs


A company reports that if its sales are $80,000, EBIT =$8,000, net income = $2400, DOL is 2.5 and DFL is 2.0.

  1. What is the company's fixed operating costs?
  2. What will the company's net income be if sales turn out to be $88,000 rather than $80,000?

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Finance Basics: What is the companys fixed operating costs
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