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2. The degree of combined leverage is a. 2.1x b. 1.9x c. 2.9x d. 2.0x Sales (75,000 units) P 750,000 Variable costs 225,000 Contribution
2. The degree of combined leverage is a. 2.1x b. 1.9x c. 2.9x d. 2.0x Sales (75,000 units) P 750,000 Variable costs 225,000 Contribution margin P 525,000 Fixed manufacturing costs 187,500 Operating income P 337,000 Interest 75,000 Earnings before taxes P 262,500 Taxes (at 31%) 81,375 Net income P 181,125 Shares outstanding 15,000
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Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
6th edition
1118096894, 978-1-11921511, 978-1118096895
