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The company incurs costs of $21.9 million regardless of the output level. It sells 7.04 million units of its product at the price of $9.96,
The company incurs costs of $21.9 million regardless of the output level. It sells 7.04 million units of its product at the price of $9.96, and its variable costs per unit are $2.31. The company has $42 million of debt with an annual interest rate of 5.05%. What is the degree of combined leverage at the current level of sales? Round to two decimals.
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