=+LG 1 LG 2 P13–15 Integrative: Multiple leverage measures Hugg-a-Bugg Soft Toys manufactures teddy bears, selling 350,000 teddy bears at $26 per teddy bear. Fixed operating costs are

$28,000 while variable operating costs are $16 per teddy bear. The manufacturer has annual interest charges of $4,500 on long-term debts, preferred dividends of

$3,000, and a 40% tax rate.