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I need help figuring out the degree of combined leverage for this Japenese firm in this question. Firms in Japan often employ both high operating
I need help figuring out the degree of combined leverage for this Japenese firm in this question.
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 134,000 units at a price of $29 per unit; variable costs are $8 per unit, and fixed costs are $1,890,000. Interest expense is $409,000.
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