Consider the following information: Sales: $950,000 Interest expense: 40,000 Variable costs: 270,000 Taxes: 84,000 Fixed costs: 400,000 If operating income increases by 7%, what should be the increase in earnings per sha 7

Finance Dec 22, 2020

Consider the following information: Sales: $950,000 Interest expense: 40,000 Variable costs: 270,000 Taxes: 84,000 Fixed costs: 400,000 If operating income increases by 7%, what should be the increase in earnings per sha 7.0% 02.83% 17.0% 19.83 3:17

Expert Solution

The answers to the given question are provided in the order below

=((950000-270000-400000)*1.07-40000)/((950000-270000-400000)-40000)-1
=8.1667%

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