Scenario A: $100\%$ Equity $($Zero Debt $$ D$/$E $=0)$

JMC firm is currently $100\%$ equity financed, with an equity of $$200,000.$ With zero debt, interest Expense $=0$

JMC Corp. sells $500,000$ bottles of its herbal soda drinks per year. Each bottle produced and sold @ a unit sales price of $$0\mathrm{.}45$ and has a unit variable cost of $$0\mathrm{.}25.$ The fixed operating costs for the firm are $$40,000.$ The corporate tax for the firm is $25\%.$

Calculate the following:

Degree of Operating Leverage $($DOL$,$ Refer $13-2$C$)$

Degree of Financial Leverage $($DFL$,$ Refer $13-2$D$)$

Degree of Total Leverage $($DTL $=$ DOL $*$ DFL$)$