Co. forecasted the following data for 2022 ·      Projected unit sales is 5,000 at a selling price of P65. ·      Variable cost ratio is 60% ·      Operating break-even point in sales is P250,000 ·      Earnings before taxes and interest is P30,000 ·      The P100,000 total debt of the firm requires annual payment of interest at 5%. What is the degree of combined

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A: Increase in sales unit = 55000 units - 49000 units = 6000 units Increase in sales units % = Increase…

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A: Degree of combined/total leverage: The degree of combined leverage summarizes the effect of both the…

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A: Degree of Operating Leverage = (% change in operating Income / % change in sales)

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A: 1) Computation of DOL, DFL, DCL is as follows:DOL=Sales -Variable costSales -variable cost-fixed…

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A: Formulas:

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A: formula for DOL, DFL and DCL DOL=contibutionEBIT=sales - variable costsales - variable cost - fixed…

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A: 15. Formula for calculating Degree of Operating Leverage is as follows: Formula = Contribution…

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Q: XYZ company expects in the coming year: sales of 40,000 units at $10 per unit, variable…

A: Solution: 1) Degree of Total Leverage: = (Sales - Variable Costs) ( Sales - Variable Costs - Fixed…

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A: In this we have to calculate present value of future value of cash flow.