Explore Westonci.ca, the leading Q&A site where experts provide accurate and helpful answers to all your questions. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals.
Sagot :
2.83 should be the increase in earnings per share.
What are earnings?
The net advantages of a firm's operations are its earnings. Additionally, earnings are the source of corporation tax obligations.
The information provided is
$950,000 in interest costs
A variable cost of 40,000:
270,000 taxes:
84,000 in fixed expenses would climb to 400,000
If sales rose by 7%.
the formula provided will be
DCL= Sales- VC / EBIT - I
Revenue before interest and tax (EBIT) Sales + VC + FC Equals EBIT.
DCL now makes use of Sales-VC/EBIT-I.
( which is the interest). EBIT- I is therefore denominated as
= 950,000-270,000-400,000-40,000.
The increase of 0.07 is equal to 0.1983 or
= 19.83%
(950,000-270,000) / (950,000-270,000-400,000-40,000)
= 2.83
Learn more about earnings, here:
https://brainly.com/question/28045589
#SPJ1
Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.
