3. a. A manufacturing company has the following income statement. Calculate the degree of total leverage (DTL), degree of operating leverage (DOL) and degree of financial leverage (DFL). (20 Marks)  - 350 Words Answer mandatory

 

Income Statement	$ millions
Revenues	1200
Variable costs	450
Fixed costs	225
EBIT	525
Interest	130
Taxable Income	395
Tax	120
Net Income	275