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Operating Leverage Assignment | Homework For You

Author:
June 8th, 2020

19. The Quiet Company sells dress shirts for men. They have variable costs per shirt of $5.00 and fixed costs of $500 per week. The company sells the ties for $20 each and sells 3,000 ties per year.Homework For You

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a. Calculate the degree of operating leverage for a 10% change in sales.

b. If the company is partially financed with debt and has annual interest cost of $1,000, what is the degree of financial leverage?

c. What is the degree of total, or combined, leverage?Get Finance homework help today

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