Compute the firms degree of combined leverage

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Reference no: EM131336913

Given the following information for Computech, compute the firm's degree of combined leverage (dollars are in thousands except EPS):

	2004	2005
Sales	$500,000	$570,000
Fixed costs	120,000	120,000
Variable costs	300,000	342,000
Earnings before interest and taxes	80,000	108,000
Interest	30,000	30,000
Earnings per share(EPS)	$1.00	$1.56

Reference no: EM131336913

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