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Linda_us, Finance, Accounts & Homework Tutor
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for linda 1. sales increased by 50% & inventory was $100,000.

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for linda
1. sales increased by 50% & inventory was $100,000. according to the percent of sales method of forecasting,what will the new inventory be?
2. a product sells for $5per unit. if fixed costs are $1,000 and variable costs are $2per unit, what is the degree of operating leverage at 2,000units?
3. accounts payable is 5% of sales.if the level of sales is anticiapated to increase from $10,000to$20,000, what is the level of accounts payable forcasted
by the percent of sales method? inc, has $650,000 in sales & $230,000 in expenses, what are the firms earnings before interest&taxes (ebit)?
5.product sells for $2per unit. if fixed costs are $200 & variable costs are a $1unit what is the break-even level of output?
6. the diner has an EBIT of $350k, what are the diner's net earnings after paying $50k in taxes & $34 in interest?

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