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Callie Corporation's prodcuts sell for $180 each. The variable cost of each product is $135, and how fixed operating costs are $371,250. Callie pays $61,875
Callie Corporation's prodcuts sell for $180 each. The variable cost of each product is $135, and how fixed operating costs are $371,250. Callie pays $61,875 interest on its outstanding debt each year, and its marginal tax rate is 40 percent. If Callie expects to sell 11,000 units, what is its degree of operating leverage (DOL), its degree of financial leverage (DFL), and its degree of total leverage (DTL)? The firm has no preferred stock.
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