A project has following estimated data: Price - S60 per unit; variable cost-$30 per unit; Fixed...
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A project has following estimated data: Price - S60 per unit; variable cost-$30 per unit; Fixed cost-$100,000; Company has borrowings of $100,000 at a rate of 10%, Calculate the combined leverage of the project when units sold are 10,000 units. a. 1.58 b. 0.63 c. 1.50 d. 1.05 A project has following estimated data: Price - S60 per unit; variable cost-$30 per unit; Fixed cost-$100,000; Company has borrowings of $100,000 at a rate of 10%, Calculate the combined leverage of the project when units sold are 10,000 units. a. 1.58 b. 0.63 c. 1.50 d. 1.05
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Hence the correct answer is the first option ie option a 158 Contribution S... View the full answer
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Accounting What the Numbers Mean
ISBN: 978-0073527062
9th Edition
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,
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