university of southern california Operations And Supply Chain Management Assignment Help - Carolina Fastener
Question - Carolina Fastener, Inc., makes a patented marine bulkhead latch that wholesales for $6.00. Each
latch has variable operating costs of $3.50. Fixed operating costs are $50,000 per year. The firm pays
$13,000 interest and preferred dividends of $7,000 per year. At this point, the firm is selling 30,000
latches per year and is taxed at a rate of 40%.
a. Calculate Carolina Fastenerâ€™s operating breakeven point.
b. On the basis of the firmâ€™s current sales of 30,000 units per year and its interest and preferred
dividend costs, calculate its EBIT and earnings available for common.
c. Calculate the firmâ€™s degree of operating leverage (DOL).
d. Calculate the firmâ€™s degree of financial leverage (DFL).
e. Calculate ...Read More
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