Question

The Spitfire Model Airplane Company has the following modified income statement ($000) at 100,000 units of...

The Spitfire Model Airplane Company has the following modified income statement ($000) at 100,000 units of production.

Revenue $16,000
Variable Cost 5,500
Fixed Cost 9200
EBIT $1,300
Interest(@10%) 500
EBT $800
Tax (@40%) 320
EAT $480
Number of shares 20,000
  1. What are Spitfire's contribution margin and dollar breakeven point? Enter your contribution margin answer in decimals and not in percentage. Enter your break-even sales answer in whole dollars. For example, an answer of $1 thousand should be entered as 1,000, not 1. Do not round intermediate calculations.
    CM (to two decimal places)
    SB/E (to the nearest dollar) $
  2. Calculate Spitfire's current DFL, DOL, and DTL. Round the answers to two decimal places. Do not round intermediate calculations.
    DFL
    DOL
    DTL
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