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5. XYZ Co produces Gidgets that sell for $35/unit, variable cost12/ ut, annual fixed cost$720,000 depreciation = $325,000. The firm has annual interest expense of
5. XYZ Co produces Gidgets that sell for $35/unit, variable cost12/ ut, annual fixed cost$720,000 depreciation = $325,000. The firm has annual interest expense of $450,000, and faces tax rates of 35%. XYZ has 100,000 shares outstanding. Compute the firm's Dou and DFL between sales levels of 70,000 and 75,000 units. Mimic steps from problem 5)
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