-The Degree of Combined Leverage Is:
A) 2

question 41

Multiple Choice

$$\begin{array} { l r } \text { Sales } ( 100,000 \text { units) } & \$ 1,000,000 \\\text { Variable costs } & \underline { 300,000 } \\\text { Contribution margin } & 700,000 \\\text { Fixed manufacturing costs } & \underline { 250,000 } \\\text { Operating income } & 450,000 \\\text { Interest } & \underline { 60,000 } \\\text { Earnings before taxes } & 390,000 \\\text { Taxes (at } 31 \% \text { ) } & \underline { 120,900 } \\\text { Net Income } & \underline { \$ 269,100 } \\\text { Shares outstanding } & 10,000\end{array}$$
-The Degree of Combined Leverage is:

• A) 2.79x.
• B) 1.90x.
• C) 1.79x.
• D) 3.46x.

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Definitions:

Pedophile Priests

Refers to clergy members who have been accused or convicted of sexual abuse or misconduct toward minors.

Celibate

Refers to the state of abstaining from marriage and sexual relations.

Child Molesting

The act of an adult engaging in sexual activities with a child, which is both illegal and morally reprehensible.

Child Molesters

Individuals who sexually abuse children, often involving activities without consent or understanding of the child.