9. Calculating the degrees of leverage
Globex Corp. forecasts the following income statement for the next year:
Income Statement For the Year Ended on December 31
Net sales
$960,000
Less: Variable costs
532,000
Less: Fixed costs
135,000
EBIT, or NOI
$293,000
Less: Interest
181,000
EBT
$112,000
Less: Taxes
44,800
Net income
$67,200
Globex Corp. uses no preferred stock in its capital structure. Click on the following lines and calculate the degrees of operating, financial, and total
leverage for Globex Corp.
DOL
DFL
DTL