Pinches Salt Company has the following income statement: Sales $5,000,000 Variable Operating Cost 1,000,000 Fixed Operating Cost 2,000,000 EBIT $2,000,000 Interest 500,000 EBT $1,500,000 Tax (at 40%)...

Pinches Salt Company has the following income statement:

            Sales                                                      $5,000,000

            Variable Operating Cost                         1,000,000

            Fixed Operating Cost                             2,000,000

            EBIT                                                      $2,000,000

            Interest                                                        500,000

            EBT                                                        $1,500,000

            Tax (at 40%)                                                600,000

            EAT                                                        $   900,000

            Preferred Dividends                                     100,000

            Earnings available for CS                       $   800,000

            Shares Outstanding                                      400,000

1. Compute Pinches DOL, DFL, and DTL

1. If sales increase to $5,500,000, what is the forecast of the EPS. You need to make a new income statement to complete this problem.

** You will need this formula to complete this problem**

Here it is:  DOL at base $ sales TR is
TR-TVC/TR-TVC-FC