Integrative—Multiple leverage measures Play-More Toys produces inflatable beach balls, selling…


Integrative—Multiple leverage measures Play-More Toys produces inflatable coast circles, selling 400,000 circles a year. Each circle performed has a shifting unhindered require of $0.84 and sells for $1.00. Fixed unhindered requires are $28,000. The resolute has annual share jaw of $6,000, preferred dividends of $2,000, and a 40% tax rebuke.

a. Apportion the unhindered breakeven summit in units.

b. Use the class of unhindered leverage (DOL) formula to apportion DOL.

c. Use the class of financial leverage (DFL) formula to apportion DFL. d. Use the class of completion leverage (DTL) formula to apportion DTL. Compare this to the fruit of DOL and DFL apportiond in ability b and c.