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Firms in Japan often employ both high operating and financial leverage because of the use of modern technology and close borrowerlender relationships. Assume the Mitaka

Firms in Japan often employ both high operating and financial leverage because of the use of modern technology and close borrowerlender relationships. Assume the Mitaka Company has a sales volume of 132,000 units at a price of $27 per unit; variable costs are $6 per unit, and fixed costs are $1,870,000. Interest expense is $407,000.

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