Finch Co. has sales of 4,800 units at $97 per unit. Variable costs are 42% of the sales price. If total fixed costs are $132,000, the degree of operating leverage is_. a. 0.80 b. 1.96 c. 2.05 d. 2.40 help

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
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Finch Co. has sales of 4,800 units at $97 per unit. Variable costs are 42% of the sales price. If total fixed costs are $132,000, the degree of operating leverage is_. a. 0.80 b. 1.96 c. 2.05 d. 2.40 help

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