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Perskey Corporation generated the following income statement for the most recent fiscal year: Sales revenues $150,000 Variable cost of sales (112,500). Gross profit 37,500 Fixed
Perskey Corporation generated the following income statement for the most recent fiscal year: Sales revenues $150,000 Variable cost of sales (112,500). Gross profit 37,500 Fixed operating costs (24,000). Net operating income (EBIT) 13,500 Interest .(10,000) Earnings before taxes 3,500 Taxes (40%) (1,400) Net income 2,100 The degree of total leverage for Perskey is closest to: 17.86% a. 10.71% b. 42.86% C
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