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Variable costs are 70% of Sales and Fixed costs are $400,000. The firm has $2,000,000 in debt with in interest rate of 5%. At what

Variable costs are 70% of Sales and Fixed costs are $400,000. The firm has $2,000,000 in debt with in interest rate of 5%. At what level of Sales will their Degree of Combined Leverage equal 4?

a) $2,500,000 b) $2,666,667 c) $ 3,333,333 d) $4,000,000

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