Reported sales of $2.4 million. Variable costs are 80% of sales and fixed costs are $160,000. The firm has a 35% tax rate and interest expense is $120,000.
If EPS is $3.75, what would the sales level have to change to before EPS would fall below $3.00?
Answer: $2.2 million
I need the calculation in order to compute this in the future. What formula do I use if I do not have the answer in front of me?