Find degree of operating leverage and financial leverage


Question:

Based on fixed cost of @250,000, Variable costs of $ .25 (25 cents) per unit, production volumes of 3,750,000 units, with an interest expense of $ 226,400, and a selling price of $ 1.50 per unit, what is the degree of operating leverage, the degree of financial leverage, and the break-even quantity?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Find degree of operating leverage and financial leverage
Reference No:- TGS02083555

Now Priced at $20 (50% Discount)

Recommended (93%)

Rated (4.5/5)