step by step instructions. 79 Haunted Forest, Inc.is selling fog machines. Use t
ID: 2647852 • Letter: S
Question
step by step instructions.
79 Haunted Forest, Inc.is selling fog machines. Use the following information about Haunted Forest, Inc. to answer the following questions. Average selling price per unit $343. Variable cost per unit $206 Units sold 387 Fixed costs $10,628 Interest expense $3,584 Based on the data above, what is the degree of total (combined) leverage of Haunted Forest, Inc.? Answer 1.37 710 Haunted Forest, Inc.is selling fog machines. Use the following information about Haunted Forest, Inc. to answer the following questions. Average selling price per unit $349. Variable cost per unit $214 Units sold 337 Fixed costs $13,566 Interest expense $4,515 Based on the data above, what will be the resulting percentage change in earnings per share if they expect units produced and sold to decrease by 3 percent? Answer Decreased by 4.98%Explanation / Answer
Sales =units sold*selling price
=343*387
=132741
Total variable cost= Variable cost per unit * units sold
= 387*206
=79722
Degree of combined leverage=Contribution/EBT
=53019/38807
=1.37
2)
Combined leverage=Contribution/EBT i.e 45495/27414
=1.66
% Change in eps /% Change in sales=Combined Leverage
% change in eps=Combined leverage*% change in sales
=1.66*3%
=4.98%
Particulars Amount Sales 132741 -Variable cost 79722 Contribution 53019 -Fixed Cost 10628 Earning Before interest and tax 42391 -Interest 3584 Earning Before Tax 38807Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.