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A Firm with $600,000 of Fixed Costs and $200,000 of Depreciation

Question 21

Multiple Choice

A firm with $600,000 of fixed costs and $200,000 of depreciation is expected to produce $225,000 in profits. What is its DOL?

A) 3.56
B) 3.67
C) 4.56
D) 4.67

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