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Compute the degree of financial leverage

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Reference no: EM133180254

Question - The following are excerpts from the income statement of Company A85 for the period ended December 31, 2020:

Sales - $1,000,000

Total variable cost - $350,000

Earnings before interest and taxes - $250,000

Income tax expense - $50,000

Net income - $100,000

Required - Compute the degree of financial leverage.

Reference no: EM133180254

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