(Solved): Smith Bottling Company (SBC) expects this year's sales to be \( \$ 420,000 \). SBC's variable operat ...

Smith Bottling Company (SBC) expects this year's sales to be \( \$ 420,000 \). SBC's variable operating costs are 60 percent of sales and its fixed operating costs are \( \$ 88,000 \). SBC pays interest on its debt equal to \( \$ 55,000 \) per year and its marginal tax rate is 35 percent. SBC has no preferred stock. a. Compute SBC's DOL, DFL, and DTL. Do not round intermediate calculations. Round your answers to two decimal places. DOL: DFL: DTL: b. If sales turn out to be \( \$ 432,600 \) rather than \( \$ 420,000 \), what will be SBC's EBIT and net income? Do not round intermediate calculations. Round your answers to the nearest dollar. EBIT: \$ Net income: \( \$ \)