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 |
- 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) |
$ |
- Calculate Spitfire's current DFL, DOL, and DTL. Round the
answers to two decimal places. Do not round intermediate
calculations.