Calculate the firm degree of combined leverage

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Reference no: EM133070399

Consider the following information from income statement:

Sales (Number of Units)

1,290

Sale Price (Per Unit)

$190

Variable Costs (Per Unit)

$80

Total Fixed Costs

$50,000

Interest Expenses

$18,000

Taxes

$11,000

Calculate the firm's degree of combined leverage (DCL).

Reference no: EM133070399

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