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

question 3

Multiple Choice

Use the below information to answer the following question.
$\begin{array}{lr}\text { Sales }(100,000 \text { units }) & \$ 1,000,000 \\\text { Variable costs } & 300,000\\\text { Contribution margin } & 700,000 \\\text { Fixed manufacturing costs } & 200,000\\\text { Operating income } & 500,000 \\\text { Interest } & 75,000\\\text { Earnings before taxes } & 425,000 \\\text { Taxes }(30 \%) & 127,500\\\text { Net income }&\$297,500\end{array}$
Refer to the table. The degree of combined leverage is ________.

• A) 2.22x
• B) 1.90x
• C) 2.95x
• D) 1.65x

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Definitions:

Discrimination

Unjust or prejudicial treatment of different categories of people, particularly on the grounds of race, age, sex, or disability.

Tenancy Termination

Refers to the legal process or conditions under which a rental agreement between a tenant and landlord is ended.

Notice

A formal or informal communication or indication that informs a party of a fact, decision, or legal process, which may have implications for rights or duties.

Advance

Money paid or received before it is due, often used in contexts like salary advances or advance payments.