Calculate degree of total leverage from the data

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Question - Hitech expects sales of 20,000 units at 6 per unit in current year while 30,000 in the coming year and must meet the following obligations: variable operating costs of 2.2 per unit, fixed operating costs of 10,000, interest of 22,000, and preferred stock dividends of 13,000. The firm is in the 35% tax bracket and has 5,000 shares of common stock outstanding. Calculate degree of total leverage from the data above.

Reference no: EM132989269

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