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Given: Fixed Cost = RM500,000 Variable cost per unit = RM25 per unit Price per unit = RM35 Interest expenses = RM20,000 per year Tax

Given: Fixed Cost = RM500,000 Variable cost per unit = RM25 per unit Price per unit = RM35 Interest expenses = RM20,000 per year Tax rate = 20% Sales = 70,000 units

Calculate the degree of financial leverage (DFL)

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