Bulldogs Inc. forecasted the following data for 2022. ·      Forecasted unit sales is 20,000. ·      The selling price of the units is P25. ·      Contribution Margin ratio is 40%. ·      Earnings before interest and taxes at P110,000. ·      The P200,000 total debt of the company requires annual of interest at 10%. What is the degree of combined leverage?

Essentials Of Investments
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Chapter1: Investments: Background And Issues
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Bulldogs Inc. forecasted the following data for 2022.

·      Forecasted unit sales is 20,000.
·      The selling price of the units is P25.
·      Contribution Margin ratio is 40%.
·      Earnings before interest and taxes at P110,000.
·      The P200,000 total debt of the company requires annual of interest at 10%.

What is the degree of combined leverage?

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