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At a Base Sales Level of $400,000, a Firm Has

Question 15

Multiple Choice

At a base sales level of $400,000, a firm has a degree of operating leverage of 2 and a degree offinancial leverage of 1.5. The firm's degree of total leverage is ____________.


A) 1.3
B) 0.5
C) 3.0
D) 3.5

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