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Question(s) / Instruction(s):

"Output level 120,000 Units Operating assets $6,000,000 Operating asset turnover 12 times Return on operating assets 48% Degree of operating leverage 10 times Interest expense $720,000 Tax rate 42% What is the firm‚s break-even point in sales dollars, If sales should increase by 40% by what percentage would EBT and net income increase, prepare another income statement to verify the calculations

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