1. Business
  2. Finance
  3. the sterling tire companys income statement for 20x1 is as...

Question: the sterling tire companys income statement for 20x1 is as...

Question details

The Sterling Tire Companys income statement for 20X1 is as follows STERLING TIRE COMPANY For the Year Ended Decenber 31, 28x1 Sales (21,800 tires at $62 each) Variable costs (21,038 tires at S31) Fixed costs Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Income tax expense (20%) Earnings after taxes (EAT) 5 1,382,098 651,808 241,890 5,500 eBook 5 190, 59 38,108 5 152,400 e. Compute the degree of operating leverage. (Round your answer to 2 decimel places. Degree of operating leverage b. Compute the degree of financial leverage. (Round your answer to 2 decimal places.) Degree of financial leverage c. Compute the degree of combined leverage. (Round your answer to 2 decimal places.) Degree of combined leverage d. Compute the breek-even point in units. (Round your answer to the nearest whole number.) Break-even point units

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution