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Firms in Oduduwa company often employ both high operating and financial leverage because of the use of modern technology and close borrower-lender relationships. Assume Oduduwa,
Firms in Oduduwa company often employ both high operating and financial leverage because of the use of modern technology and close borrower-lender relationships. Assume Oduduwa, has sales volume of 100,000 units at a price of $25.00 per unit; variable cost of $5.00 per unit and a fixed costs of $1,500,000. What is the degree of combined leverage for this Oduduwa firm? $100,000 - $100,000 x 25 x5 $2,500,000 $500,000 $2,500,000 - $ 500,000 $ 2,000,000 $2,000,000 - $1,500,000 $ 500,000
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