Cables Inc., a computer cable manufacturer, expects sales of 5,000 units at $10 per unit in...

Cables Inc., a computer cable manufacturer, expects sales of 5,000 units at $10 per unit in the coming year and must meet the following obligations: variable operating costs of $5 per unit, fixed operating costs of $5,000, interest of $5,000, and preferred stock dividends of $4,000. The firm is in the 40% tax bracket and has 1,000 shares of common stock outstanding. Assume in year 2, there is an increase in sales to 10,000 units. You are required to make the projected income statement for the company based on the above information for year 1 and year 2. (Refer to the class discussion on Total Leverage –Table 12.7 in page 519 of book) Calculate the Degree of operating leverage, Degree of Financial Leverage and Degree of Total Leverage.

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A manufacturer produces a product that sells for $10 per unit. Variable costs per unit are...

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Order: Heparin 8,500 unit subcut daily Available: Heparin 5,000 units per mL

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