Cohens bowling emporium has a degree of financial leverage


Cohen's Bowling Emporium has a degree of financial leverage of 2.0 and a degree of combined leverage of 6.0.

The breakeven sales level for Cohen's has been estimated to be $500,000. Fixed costs total $250,000. What effect will a 15 percent increase in sales have on EBIT?

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Financial Management: Cohens bowling emporium has a degree of financial leverage
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