You are a consultant for Tonya's Totally Trendy T-Shirts (an online t-shirt vendor). As part of your consulting contract, you are conducting an assessment of the company's business risk. You looked at their performance from last year to this year. The data are found in the table below. Based on this data, what is Tonya's Totally Trendy T-Shirts' degree of combined leverage (DCL)? (Use the definitional formula - not the "alternate formula" from the book to solve this question, and use three decimal places in your response.)

	Last Year	This Year
T-Shirts Sold	170,919	202,813
Selling price per shirt	$18.52	$22.70
Variable cost per shirt	$6.01	$6.16
Total fixed operating costs	$428,880	$428,880
Interest expense	$99,993	$99,993
Tax rate (average tax rate)	35%	30%

You Answered

111.12

Correct Answer

1.96