a. Before you can compute the? firm's break-even point in sales? dollars, you need to compute...

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Finance

a. Before you can compute the? firm's break-even point in sales?dollars, you need to compute some items on the? firm's incomestatement.
The? firm's operating assets are 3,600,000 and the operatingasset turnover is 7 times. What are the? firm's sales?revenues?
?$nothing??
?(Round to the nearest? dollar.)
The? firm's operating assets are 3,600,000
and the return on operating assets is 34%. What is the? firm'sEBIT?
?$nothing
?(Round to the nearest? dollar.)
Given the degree of operating leverage of
4 times the sales and EBIT computed in previous? steps, what arethe? firm's total variable? costs?
?$nothing
? (Round to the nearest? dollar.)
Based on the computed? sales, EBIT, and variable? costs, whatare the? firm's total fixed? costs?
?$nothing??
?(Round to the nearest? dollar.)
Output level
78,000 units
Operating assets
?3,600,000
Operating asset turnover
7 times
Return on operating assets
34?%
Degree of operating leverage
4 times
Interest expense
600,000
Tax rate
38?%

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4.3 Ratings (642 Votes)

Ans 1 Assets turnover Sales Operating assets 7 Sales 3600000 Sales 3600000 7 Sales 25200000 Ans 2 Return on operating assets EBIT See Answer

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Transcribed Image Text

a. Before you can compute the? firm's break-even point in sales?dollars, you need to compute some items on the? firm's incomestatement.The? firm's operating assets are 3,600,000 and the operatingasset turnover is 7 times. What are the? firm's sales?revenues??$nothing???(Round to the nearest? dollar.)The? firm's operating assets are 3,600,000and the return on operating assets is 34%. What is the? firm'sEBIT??$nothing?(Round to the nearest? dollar.)Given the degree of operating leverage of4 times the sales and EBIT computed in previous? steps, what arethe? firm's total variable? costs??$nothing? (Round to the nearest? dollar.)Based on the computed? sales, EBIT, and variable? costs, whatare the? firm's total fixed? costs??$nothing???(Round to the nearest? dollar.)Output level78,000 unitsOperating assets?3,600,000Operating asset turnover7 timesReturn on operating assets34?%Degree of operating leverage4 timesInterest expense600,000Tax rate38?%

Output level	78,000 units
Operating assets	?3,600,000
Operating asset turnover	7 times
Return on operating assets	34?%
Degree of operating leverage	4 times
Interest expense	600,000
Tax rate	38?%