Use the following information to calculate the companys operating leverage, financial leverage, and combined leverage: Sales volume

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Use the following information to calculate the company’s operating leverage, financial leverage, and combined leverage:

Sales volume …………………………           100,000 units

Price per unit …………………………          $  11.30

Interest ………………………………           $ 2 5,000

Variable costs (per unit) ……………..           $  8.30

Fixed costs ………………………….            $100,000

Corporate income tax rate ………….              40%

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