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tunisia81 tunisia81
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A year ago
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 sold150,000
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.
Textbook 
Corporate Finance

Corporate Finance


Edition: 5th
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onidonid
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