Degree of combined leverage for this japanese firm

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Firms in Japan often employ both high operating and financial leverage because of the use of modern technology and close borrower-lender relationships. Assume the Mitaka Company has a sales volume of 130,000 units at a price of $30 a unit; variable costs are $10 per unit, and fized costs are $1,850,000. Interest expense is $405,000. What is the degree of combined leverage for this Japanese firm?

Reference no: EM13846355

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