What is the degree of combined leverage

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Problem - 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 128,000 units at a price of$28 per unit; variable costs are $8 per unit, and ?xed costs are $1,830,000. Interest expense is $403,000. What is the degree of combined leverage for this Japanese ?rm?

Reference no: EM132894903

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