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    Foundations of Financial Management Study Set 1
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    Exam 5: Operating and Financial Leverage
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    ECG Has a Contribution Margin of $196,000
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ECG Has a Contribution Margin of $196,000

Question 54

Question 54

Multiple Choice

ECG has a contribution margin of $196,000.If ECG earned $87,000 before taxes in the year,what is the firm's Degree of Combined Leverage?


A) 2.26x
B) 1.27x
C) 0.44x
D) 1.29x

Correct Answer:

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