Problem 5-19 Japanese firm and combined leverage [LO5-5]

Firms in Japan often employ both high operating and financial leverage because of the use of modern technology and close borrowerlender relationships. Assume the Mitaka Company has a sales volume of 141,000 units at a price of $26 per unit; variable costs are $6 per unit, and fixed costs are $1,960,000. Interest expense is $416,000.

What is the degree of combined leverage for this Japanese firm? (Round your answer to 2 decimal places.)