Find degree of operating leverage

Assignment Help Finance Basics

Reference no: EM1352273

Trident Food Corporation generated th following income statement for the most recent fiscal year.

Trident December 31, 2008 Sales Revenue $150,000

Variable Cost of Sales (112,500)

Gross profit 37,500

Fixed Operating Cost 24,000

Net Operating Income (EBIT) 13,500

Interest (10,000)

Earnings Before Taxes 3,500

Taxes (40%) (1,400)

Net Income 2,100

Each item of inventory Trident Foods produces has a selling price of $20

What is the degree of operating leverage of Trident?

What is the degree of total leverage for Trident?

What is the operating breakeven point in sales units (Q) for Trident?

What is the financial breakeven point for Trident?

How many units of inventory must Trident sell if it wants to operate at its financial breakeven point ?

Reference no: EM1352273

Questions Cloud

Employee problems : You have no employee contract or policies written down. What would you do keeping in mind the pros and cons of all possible options?

Define quantitative research : Define quantitative research and when do we use quantitative approach and what is the advantages and disadvantages when using a quantitative research?

Discuss whether the hurricane cyclostrophic or geostrophic : If in general R were calculated as R=V/I, which curcuit arrangement in part A of experiment would have the smalles ERROR? define.

Advantage and disadvantage of using word to work in graphics : Identify the advantages and disadvantages of using Word to work with graphics, tables, and special formatting functionality. Provide specific examples.

Find degree of operating leverage : Trident Food Company generated th following income statement for the most recent fiscal year. Every item of inventory Trident Foods produces has a selling price of $20

Does there is enough time to expand its kitchen : During the course of a week, McDonald's has enough time to hire or layoff workers, but it does not have enough time to expand its kitchen or add an additional seating area.

Concepts in organizational behavior-conflict and change : Choose one of the elements and explain why it is the most important element of the analysis - Organizational Behavior-Conflict and Change

Community psychology action and research tools : How can community psychology action and research tools be applied to issues such as colonization, racism, immigration or adaptation within a global context.

Question related to customer relations : Question related to Customer Relations - How could the principles used by IDEO in redesigning customer relations be used in other industries?

User Account

All Pages