At a Base Sales Level of $400,000, a Firm Has

question 135

Multiple Choice

At a base sales level of $400,000, a firm has a degree of operating leverage of 2 and a degree of financial leverage of 1.5. The firm's degree of total leverage is ________.

• A) 3.5
• B) 3.0
• C) 0.5
• D) 1.3

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