Given the following information for Computech, compute the firm's degree of combined leverage (dollars are in thousands except EPS):
|
|
2004
|
2005
|
|
Sales
|
$500,000
|
$570,000
|
|
Fixed costs
|
120,000
|
120,000
|
|
Variable costs
|
300,000
|
342,000
|
|
Earnings before interest and taxes
|
80,000
|
108,000
|
|
Interest
|
30,000
|
30,000
|
|
Earnings per share(EPS)
|
$1.00
|
$1.56
|