Biology Forums - Study Force

Given the following information extracted from the income statement of Widget Company (Widget Company has no depreciation expense or opening or closing inventory),

Extract from Widget Company's Income Statement
Sales:

Units sold

150,000

Price per unit

$15

Variable cost per unit

$8

Fixed factory operating costs

$450,000

Total gross profit margin

$600,000

Administrative fixed costs

$200,000

Fixed interest costs

$100,000

Taxes

$75,000

The degree of total leverage (DTL) of Widget Company is closest to

▸ 3.50.

▸ 4.00.

▸ 2.80.

▸ 3.25.

Content hidden