Based on the below data, compute for the Degree of Financial Leverage: Sales 100,000,000 Variable Cost 40,000,000 Fixed Cost 40,000,000 Capital employed of the company 80,000,000 Debts (carries 10% interest) 40,000,000

Based on the below data, compute for the Degree of Financial Leverage: Sales 100,000,000 Variable Cost 40,000,000 Fixed Cost 40,000,000 Capital employed of the company 80,000,000 Debts (carries 10% interest) 40,000,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 23MC: If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month,...

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100%

Based on the below data, compute for the Degree of Financial Leverage:

Sales 100,000,000

Variable Cost 40,000,000

Fixed Cost 40,000,000

Capital employed of the company 80,000,000

Debts (carries 10% interest) 40,000,000

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