Question

Company H wants to calculate degree of operating, financial and combined leverage for
the
company using 2018 financial data. The financial data are as follows:
Sales (80,000 units)
Variable costs
Contribution
Fixed costs
Operating income
Interest
Earnings before taxes
$800,000
$250,000
$550,000
$150,000
$400,000
$50,000
$350,000
D
What is the Degree of Operating Leverage (DOL), Degree of Financial Leverage (DFL)
and Degree of Combined Leverage (DCL)?​

Answer 1

Answer:

1500000 is the right answer

Explanation:

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