ASDF Corporate Income Statement Current Year Units Sold 100,000 $37.84 $3, 784,000 $1,284,000 Unit Price Sales Revenue Variable Expenses (Materials & Labor) Fixed Expenses (Marketing & Overhead) Earnings Before Interest & Taxes $350,000 $2,150,000 (ЕВIT) $198,000 $1,952,000 Paid Interest Earnings Before Taxes (EBT) $664,000 Тахes Net Income after Taxes (NIAT) $1,288,000 $258,000 Dividends Retained Earnings $1,030,000 15. Given the above Degree of Combined Leverage (DCL), a 15% increase in sales would lead to what Percent and Dollar increase in Net Income After Taxes (NIAT)? % Increase in NIAT = % Increase in Sales X DCL х $Increase in NIAT = % Increase in NIAT X NIAT х
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ASDF Corporate Income Statement Current Year Units Sold 100,000 $37.84 $3, 784,000 $1,284,000 Unit Price Sales Revenue Variable Expenses (Materials & Labor) Fixed Expenses (Marketing & Overhead) Earnings Before Interest & Taxes $350,000 $2,150,000 (ЕВIT) $198,000 $1,952,000 Paid Interest Earnings Before Taxes (EBT) $664,000 Тахes Net Income after Taxes (NIAT) $1,288,000 $258,000 Dividends Retained Earnings $1,030,000
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15. Given the above Degree of Combined Leverage (DCL), a 15% increase in sales would lead to what Percent and Dollar increase in Net Income After Taxes (NIAT)? % Increase in NIAT = % Increase in Sales X DCL х $Increase in NIAT = % Increase in NIAT X NIAT х
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