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La Bodeguita manufactures balls and sells 220,000 units per year. Each item produced has a variable operating cost of $ 0.80 and sells for $
La Bodeguita" manufactures balls and sells 220,000 units per year. Each item produced has a variable operating cost of $ 0.80 and sells for $ 1.6. Fixed operating costs are $ 20,000. The company has annual interest expenses of $ 7,000, preferred stock dividends of $ 1,200, a 30% tax rate.
Use the Degree of Total Leverage Degree (DTL) formula to calculate the DTL ?
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