Use the Below Information to Answer the Following Question Refer to the Table

question 22

Multiple Choice

Use the below information to answer the following question.
$\begin{array}{ll} \text {Sales (1,000 units) }&\$200,000\\ \text {Variable costs }&110,000\\\text { Contribution margin } & 90,000 \\\text { Fixed manufacturing costs } & 40,000\\\text { Operating income } & 50,000 \\\text { Interest } & 10,000\\\text { Earnings before taxes } & 40,000 \\\text { Taxes }(30 \%) & 12,000\\ \text {Net income }&\$28,000\\ \text {Shares Outstanding }&1,000\\\end{array}$
Refer to the table. The degree of financial leverage (DFL) is ________.

• A) 3.50x
• B) 1.40x
• C) 1.95x
• D) 1.25x

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Definitions:

Industry-Centric Learning

Learning and training programs designed specifically around the needs and characteristics of a particular industry sector.

Learning 2.0

An approach to education that utilizes social media and technology to enhance learning experiences.

Learning 2.0

An approach to education that incorporates technology and collaborative tools to enhance learning experiences and outcomes.

Social Learning

A theory which posits that new behaviors can be acquired by observing and imitating others, emphasizing the importance of social context in learning.