-The Degree of Financial Leverage (DFL)is:
A) 3

question 76

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 Financial Leverage (DFL) is:

• A) 3.50x.
• B) 1.40x.
• C) 1.95x.
• D) 1.58x.

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Definitions:

Left Arm

The human limb located on the left side of the body, extending from the shoulder to the hand, used for various activities and functions.

Left Leg

Refers to the lower limb on the left side of the body, from hip to foot.

Ventricular Fibrillation

A life-threatening heart rhythm that results in a rapid, erratic heartbeat that prevents the heart from pumping blood effectively.

Cardiac Disease

A broad term for diseases affecting the heart, such as coronary artery disease, heart rhythm problems, and heart defects.