What is its degree of operating leverage

Reference no: EM131399286

Callie Corporation's products sell for $180 each. The variable cost of each product is $135, and fixed operating costs are $371,250. Callie pays $61,875 interest on its outstanding debt each year, and its marginal tax rate is 40 percent. If Callie expects to sell 11,000 units, what is its degree of operating leverage (DOL), the degree of financial leverage (DFL), and the degree of total leverage (DTL)?

Reference no: EM131399286

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