questionThe Harding Company manufactures skates. The company’s income statement for 20X1 is as follows:
| HARDING COMPANY Income Statement For the Year Ended December 31, 20X1| |
|---|---|
| Sales (10,500 skates @ $60 each) |$\$630,000$ |
| Less: Variable costs (10,500 skates at $25) |$262,500$|
| Fixed costs |$200,000$|
| Earnings before interest and taxes (EBIT) |$\$167,500$ |
| Interest expense |$62,500$ |
| Earnings before taxes (EBT) | $\$105,000$ |
| Income tax expense (30%) | $31,500$ |
| Earnings after taxes (EAT) | $\$ 73,500$ |
Given this income statement, compute the following: Degree of operating leverage. 14th EditionDonald E. Kieso, Jerry J. Weygandt, Terry D. Warfield1,471 solutions
4th EditionDon Herrmann, J. David Spiceland, Wayne Thomas1,097 solutions
11th EditionClaudia Bienias Gilbertson, Debra Gentene, Mark W Lehman1,012 solutions
9th EditionDaniel F Viele, David H Marshall, Wayne W McManus345 solutions
