Question
Question 1: Maverick Technologies has sales of $3,000,000. The companys fixed operating costs total $523,236 and its variable costs equal 60% of sales. The companys
Question 1: Maverick Technologies has sales of $3,000,000. The companys fixed operating costs total $523,236 and its variable costs equal 60% of sales. The companys interest expense is $500,000. What is the companys degree of total leverage (DTL)? Answer to 2 decimal places.
Question 2: Maverick Technologies has sales of $3,000,000. The companys fixed operating costs total $500,000 and its variable costs equal 60% of sales, so the companys current operating income is $700,000. The companys interest expense is $420,265. What is the companys degree of financial leverage (DFL)? Answer to 2 decimal places.
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