Kiwi Airlines has fixed operating costs of $3 million, and its variable costs amount to 24 percent of sales revenue. The firm has $2 million in bonds outstanding with a coupon interest rate of 8 percent. Revenues for the firm are $9 million and the firm is in the 21 percent corporate income tax bracket. What is the firm's degree of operating leverage? SET YOUR CALCULATOR TO 4

Question 9 1 pts Kiwi Airlines has fixed operating costs of $3 million, and its variable costs amount to 24 percent of sales revenue. The firm has $2 million in bonds outstanding with a coupon interest rate of 8 percent. Revenues for the firm are $9 million and the firm is in the 21 percent corporate income tax bracket. What is the firm's degree of operating leverage? SET YOUR CALCULATOR TO 4 DECIMAL PLACES. ROUND TO 2 DECIMAL PLACES AT THE END. FOR EXAMPLE, IF YOUR ANSWER IS 9.4567, ENTER IT AS 9.46