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What is the degree of combined leverage for Japanese firm

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Question - 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 132,000 units at a price of $27 per unit; variable costs are $6 per unit, and fixed costs are $1,870,000. Interest expense is $407,000. What is the degree of combined leverage for this Japanese firm?

Reference no: EM132997226

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