Omega Supplies is a manufacturer and distributor of healthcare products. It has provided the following...
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Accounting
Omega Supplies is a manufacturer and distributor of healthcare products. It has provided the following Income Statement for the year ended March 31, 2023: Sales (60,000 units) $3,600,000 Variable costs 2,160,000 Contribution margin 1,440,000 Fixed manufacturing costs 850,000 Operating income 590,000 Interest 160,000 Earnings before taxes 430,000 Taxes (at 30%) 129,000 Net income $301,000 Shares outstanding 400,000 Required: Calculate the following (to get proper credit, show detailed calculation including formula used) A) Calculate Break-Even in $ Sales (Assume interest as a fixed expense) [5 Marks] B) Degree of Operating Leverage [2 Marks] C) Degree of Financial Leverage [2 Marks] D) How many units the company needs to sell to earn an EBT of $600,000 [4 Marks] Detailed
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