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QUESTIONS Mcks Lemonade has demned that is revenues were to increase by 10 percent, then Eat would increase perder $12

Finance Aug 12, 2020

QUESTIONS Mcks Lemonade has demned that is revenues were to increase by 10 percent, then Eat would increase perder $12.000 The red costs cash only for the company we $104.000 Given the care 10 percent increases, TDA would change by percent (Round answer to decimal placer Om iginaw. Alimentation should be rounded to decimal before carrying to extraction)

Expert Solution

Revenue x
Variable Costs y
Fixed Costs 10400
Depreciation z
EBIT x-y-104000-z=126000/1.29

Revenue 1.1x
Variable Costs 1.1y
Fixed Costs 104000
Depreciation z
EBIT 1.1x-1.1y-104000-z=126000

1.1a-1.1*104000-1.1z=1.1*126000/1.29
1.1a-104000-z=126000
z=-(126000*(1.1/1.29-1)+0.1*104000)/0.1

% change in EBITDA=(1.1x-1.1y-104000)/(x-y-104000)-1
=(1.1*(126000/1.29+z+104000)-104000)/((126000/1.29+z+104000)-104000)-1
=(1.1*(126000/1.29-(126000*(1.1/1.29-1)+0.1*104000)/0.1+104000)-104000)/((126000/1.29-(126000*(1.1/1.29-1)+0.1*104000)/0.1+104000)-104000)-1
=15.8018%

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