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ABC Corporation 20x8 Income Statement (in $millions) Sales 3,482 Cost of Goods Sold (100% variable) 650 Operating Expense (100% fixed) 2,194 Earnings Before Interest and
ABC Corporation | |
20x8 Income Statement (in $millions) | |
Sales | 3,482 |
Cost of Goods Sold (100% variable) | 650 |
Operating Expense (100% fixed) | 2,194 |
Earnings Before Interest and Taxes | 638 |
Interest Expense | 323 |
Earnings Before Taxes | 315 |
Taxes | 126 |
Net Income | 189 |
What is the DOL of ABC? Assume Cost of Goods Sold is variable cost and all operating expenses are fixed costs.
A)2.03
B)8.99
C)4.44
D)5.46
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