Question: Question 25 (3 points) Sales (100,000 units) $1,000,000 Variable costs 300,000 Contribution margin 700,000 Fixed manufacturing costs 250,000 Operating income 450,000 Interest 60,000 Earnings

Question 25 (3 points) Sales (100,000 units) $1,000,000 Variable costs 300,000 Contribution

Question 25 (3 points) Sales (100,000 units) $1,000,000 Variable costs 300,000 Contribution margin 700,000 Fixed manufacturing costs 250,000 Operating income 450,000 Interest 60,000 Earnings before taxes 390,000 Taxes (at 31%) 120,000 Net income $269,100 10,000 Shares outstanding The Degree of Combined Leverage is: 1.90x. 3.46x. 2.79x. 1.79x.

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