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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 DFL at the 20,000 unit level of sales.
| A. 1.7143 |
| B. 1.40 |
| C. 2.40 |
| D. 1 |
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