Homework Answers
4& 5
| Sales | 300000 |
| less: | |
| variable operating cost [300000*60%] | (180000) |
| Fixed operating cost | (125000) |
| Earning before Interest and tax [EBIT ] | (5000) |
| Less:Interest (600000*30% =180000Debt *9%] | (16200) |
| Earning before tax | (21200) |
| Tax saving due to loss [21200*21%] | 4452 |
| Net Income | (16748) |
| number of shares outstanding | 15000 |
| Earning per share [16748/15000] | -1.1165 (rounded to -1.12) |
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