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Firm A has fixed operating costs of $100,000, variable operating costs per unit of $8 and a selling price of $20 per unit. Interest expense

Firm A has fixed operating costs of $100,000, variable operating costs per unit of $8 and a selling price of $20 per unit. Interest expense is $40,000 per year. Compute the DTL at the 20,000 unit level of sales.

1.7143

1.40

2.40

1

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