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

Firms in Japan often employ both high operating and financial leverage because of the use of modern technology and close borrower-lender relationships. Assume the Mitaka Company has a sales volume of 125,000 units at a price of $25 per unit; variable costs are $5 per unit and fixed costs are $1,800,000. Interest expense is $400,000.
What is the DCL for this Japanese firm? (Round the final answer to 2 decimal places.)
Degree of combined leverage X

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