Question: R&D Computer Corporation sells its product, which has a variable cost equal to $21 per unit, for $50 per unit. Fixed operating costs are $360,000.

R&D Computer Corporation sells its product, which has a variable cost equal to $21 per unit, for $50 per unit. Fixed operating costs are $360,000. To support operations, the firm requires $1,000,000 in debt, which has a cost of 10%. The tax rate is irrelevant. The sales forecast for the coming year is 140,000 units; Compute the company's DOL, DFL, and DTL. Explain your results?

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