-The Degree of Combined Leverage (DCL)is:
A) 3

question 21

Multiple Choice

$$\begin{array} { l r } \text { Sales } ( 30,000 \text { units } ) & \$ 150,000 \\\text { Variable costs } & \underline { 100,800 } \\\text { Contribution margin } & 49,200 \\\text { Fixed manufacturing costs } & \underline { 24,000 } \\\text { Operating Income } & 25,200 \\\text { Interest } & \underline { 18,000 } \\\text { Earnings Before Taxes } & 7,200 \\\text { Taxes } ( 30 \% ) & \underline { 2,160 } \\\text { Net Income } & \underline { \$ 5,040 } \\\text { Shares Outstanding } & 600\end{array}$$
-The Degree of Combined Leverage (DCL) is:

• A) 3.08x.
• B) 5.45x.
• C) 2.73x.
• D) 6.83x.

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Definitions:

Prisoner's Dilemma

A situation in game theory where two individuals acting in their own self-interest do not result in the optimal outcome, illustrating the conflict between individual and collective rationality.

Social Dilemmas

Situations in which short term personal gain is at odds with the long-term good of the group.

Common Good

A concept that suggests certain goods, advantages, or benefits should be shared among all members of a society or community.

Cooperation

The process of working together towards a common goal, often involving shared efforts, resources, and decision-making among individuals or groups.