Question: answer Sales Variable costs $1,040,000 Contribution margin 130,000 Fixed manufacturing costs 910,000 Operating income 350,000 Interest 560,000 Earnings before taxes 80,000 Taxes 480,000 Net income

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answer Sales Variable costs $1,040,000 Contribution margin 130,000 Fixed manufacturing costs 910,000

Sales Variable costs $1,040,000 Contribution margin 130,000 Fixed manufacturing costs 910,000 Operating income 350,000 Interest 560,000 Earnings before taxes 80,000 Taxes 480,000 Net income $360,000 Shares outstanding 10,000 What is the Degree of Financial Leverage (DFL)? 2 decimals

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