For GG. Co., calculate the degree of total leverage (DTL) and break-even point of sales at which

Question:

For GG. Co., calculate the degree of total leverage (DTL) and break-even point of sales at which the firm covers all its operating and fixed costs, given the following information: sales are $5,050,000; variable cost is $1,850,000; net income is $685,750; tax rate (T) is 35 percent; and fixed cost is $2,100,000.