Smith Bottling Company (SBC) expects this year's sales to be $624,000. SBC's variable operating costs are 75 percent of sales and its fixed operating costs are $96,000. SBC pays interest on its debt equal to $35,000 per year and its marginal tax rate is 35 percent. SBC has no preferred stock. a. Compute SBC's DOL, DFL, and DTL. Do not round intermediate calculations. Round your answers to two decimal places. DOL: DFL: DTL: b. If sales turn out to be $648,960 rather than $624,000, what will be SBC's EBIT and net income? Do not round intermediate calculations. Round your answers to the nearest dollar. EBIT: $ Net income: $
Smith Bottling Company (SBC) expects this year's sales to be $624,000. SBC's variable operating costs are 75 percent of sales and its fixed operating costs are $96,000. SBC pays interest on its debt equal to $35,000 per year and its marginal tax rate is 35 percent. SBC has no preferred stock. a. Compute SBC's DOL, DFL, and DTL. Do not round intermediate calculations. Round your answers to two decimal places. DOL: DFL: DTL: b. If sales turn out to be $648,960 rather than $624,000, what will be SBC's EBIT and net income? Do not round intermediate calculations. Round your answers to the nearest dollar. EBIT: $ Net income: $
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter6: Accounting For Financial Management
Section: Chapter Questions
Problem 11P: The Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are...
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