A Firm with $600,000 of Fixed Costs and $200,000 of Depreciation

question 21

Multiple Choice

A firm with $600,000 of fixed costs and $200,000 of depreciation is expected to produce $225,000 in profits. What is its DOL?

• A) 3.56
• B) 3.67
• C) 4.56
• D)4.67