-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:

Global Spending Priorities

The allocation and distribution of financial resources across various sectors globally, influenced by economic policies, societal needs, and international agreements.

Collectivism

A value system that emphasizes the importance of the group over individual achievements, promoting shared goals and responsibilities within a community.

Consumerism

The societal tendency to equate personal happiness with the purchase and consumption of material possessions.

Global Inequality

The unequal distribution of resources, opportunities, and wealth among and within countries, contributing to disparities in health, education, and living standards.