Last year, Lexington had sales of $738,000 and paid taxes of $84,000. Because of the...
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Last year, Lexington had sales of $738,000 and paid taxes of $84,000. Because of the low interest rate environment, the firm also borrowed some money from the local bank and paid $73,000 in interest expense. In addition, the firm incurred Variable costs and Fixed Costs of $167,000 and $133,000 respectively. If operating income increases by 7%, what should be the increase in earnings per share? SET YOUR CALCULATOR TO 4 DECIMAL PLACES AND ROUND TO 2 DECIMAL PLACES AT THE END. DO NOT ENTER THE % SIGN. IF YOUR ANSWER IS 7.7011%, FOR EXAMPLE, ENTER 7.70
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