Bristal Boats,Inc

question 108

Multiple Choice

Bristal Boats,Inc.reports sales of $4,000,000,variable costs of $500,000,fixed operating costs of $1,250,000,and interest expense of $350,000.The corporation's EBIT is $3,250,000 and its marginal tax rate is 30%.If the corporation is able to increase its sales by 25%,then

• A) its EBIT will increase by 25% and its EPS will increase by 25%.
• B) its EBIT will increase by more than 25% and its EPS will increase by less than 25%.
• C) its EBIT and EPS will both increase, but less than 25% due to fixed costs and taxes.
• D) its EBIT will increase by more than 25% and its EPS will increase by more than the percentage increase in EBIT.

Gain knowledge of sales budget preparation, including unit sales, sales prices, and ending inventory desires.

Get familiar with the concept of safety stock and its role in inventory management.

Identify factors influencing the preparation of a sales budget.

Understand the calculation of purchases required based on sales forecasts and inventory policies.

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Definitions:

Unskilled Occupations

Jobs that require minimal technical training and education, often involving manual labor or routine tasks.

Skilled Occupations

Jobs that require specialized knowledge or abilities, often acquired through education, training, or experience.

Skilled Labor

Skilled labor refers to workers who have specialized training, experience, or education that enables them to perform specific tasks.

Unskilled Labor

Work that requires minimal specialized skills or training, often involving manual or routine tasks.