What would be the after-tax profit of a company

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Question - What would be the after-tax profit of a company that has a degree of operating leverage of 4, if variable costs per unit are $2.50; annual fixed costs (excluding depreciation) are $350,000, and annual depreciation is $250,000? Assume that the tax rate is 25%.

a. $200,000

b. $170,000

c. $100,000

d. $150,000

e. $112,500

Reference no: EM133057725

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