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06 1560 DOC Dol  Form

06 1560 DOC Dol Form

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welcome back again let's look at another leverage problem where we have to find out the dol dfl dcl and interpret the results and plus we have another part in this problem if sales increased by 10 what will be the change in eba ebt and ebit if ebit decreases by 10 what is the change in eps very similar to the previous leverage problem that i had done earlier all right first things first income statement sales what is sales output is 80 000 units times 20. so that works out to one lakh or 16 yeah 16 lakhs minus variable cost all right minus variable cost what is variable cost eighty thousand units into twelve so eighty thousand into twelve works out to nine lakhs sixty thousand so you have contribution all right so what so what is contribution it will be 6 lakhs 40 000 minus fixed costs what is the fixed cost 3 lakhs so after that you'll get operating profit or ebig all right so we are left with 3 lakhs 40 minus interest payment interest is given 1 lakh 40 000. okay so so the ebt earnin

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