-The Degree of Combined Leverage Is:
A) 2

question 6

Multiple Choice

$\begin{array}{lr}\text { Sales }(75,000 \text { units }) & \$ 750,000 \\\text { Variable costs } & \underline{225,000} \\\text { Contribution margin } & 525,000 \\\text { Fixed manufacturing costs } & \underline{187,500}\\\text { Operating income } & 337,500 \\\text { Interest } & \mathbf{7 5 , 0 0 0} \\\text { Earnings before taxes } & 262,500 \\\text { Taxes (at } 31 \% \text { ) } & 81.375\\\text { Net income }&\$181,125\\\text { Shares outstanding }&15,000\end{array}$
-The Degree of Combined Leverage is:

• A) 2.1x.
• B) 1.9x.
• C) 2.9x.
• D) 2.0x.

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Definitions:

Type B Personality

A personality type characterized by a laid-back, less competitive, and more reflective disposition compared to Type A personality.

Fight-Or-Flight

A physiological response to perceived harmful events, attacks, or threats to survival, triggering a state of increased alertness and readiness for physical action.

Immune Systems

The body's defense mechanism against pathogens, consisting of a complex network of cells, tissues, and organs that work together to protect the body.

NK Cells

Natural Killer cells, a type of lymphocyte critical to the innate immune system, known for their ability to target and destroy tumor cells and cells infected with viruses.