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The company incurs costs of $22.91 million regardless of the output level. It sells 7.27 million units of its product at the price of $9.58,
The company incurs costs of $22.91 million regardless of the output level. It sells 7.27 million units of its product at the price of $9.58, and its variable costs per unit are $2.18. The company has $46 million of debt with an annual interest rate of 5.85%. What is the degree of financial leverage at the current level of sales? Round to two decimals.
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