Acme , inc. reported the following income statement for 2015 sales $2,500,000 variable costs 900,000 fixed operating costs 700,000 ebit 900,000 interest expense 200,000 ebt 700,000 taxes @ 30% 210,000 net income $490,000 earnings per share $4.90 what is the degree of total leverage? a.1.78 b.4.90 c.1.29 d. 2.28

Joint cost cheyenne, inc. produces three products from a common input. the joint costs for a typical quarter follow: direct materials $45,000 direct labor 55,000 overhead 60,000 the revenues from each product are as follows: product a $75,000 product b 80,000 product c 30,000 management is considering processing product a beyond the split-off point, which would increase the sales value of product a to $116,000. however, to process product a further means that the company must rent some special equipment costing $17,500 per quarter. additional materials and labor also needed would cost $12,650 per quarter. a. what is the gross profit currently being earned by the three products for one quarter? $answer b. what is the effect on quarterly profits if the company decides to process product a further? $answer