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A firm has fixed operating costs of $15,000, a sale price per unit of $30, a variable cost per unit of $18, interest expense of
A firm has fixed operating costs of $15,000, a sale price per unit of $30, a variable cost per unit of $18, interest expense of $1,070, preferred dividends of $900 and a tax rate of 40%. At a base sales level of 10,000 units, the firm's degree of financial leverage is ________.?
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