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Given the following information for Computech, compute the firms degree of combined leverage (dollars are in thousands except EPS). Round your answer to one decimal

Given the following information for Computech, compute the firms degree of combined leverage (dollars are in thousands except EPS). Round your answer to one decimal place.

Year 1 Year 2
Sales $700,000 $784,000
Fixed costs 120,000 120,000
Variable costs 200,000 224,000
Earnings before interest and taxes $380,000 $440,000
Interest 40,000 40,000
Earnings per share (EPS) $5.10 $6.00

Degree of combined leverage:

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