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Alvarez Technologies has sales of $3,000,000. The companys fixed operating costs total $500,000 and its...

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Finance

  1. Alvarez Technologies has sales of $3,000,000. The companys fixed operating costs total $500,000 and its variable costs equal 60 percent of sales, so the companys current operating income is $700,000. The companys interest expense is $500,000. What is the companys degree of total operating leverage?
  1. 1.714
  2. 3.100
  3. 3.250
  4. 3.500

  1. Alvarez Technologies has sales of $3,000,000. The companys fixed operating costs total $500,000 and its variable costs equal 60 percent of sales, so the companys current operating income is $700,000. The companys interest expense is $500,000. What is the companys degree financial leverage?
  1. 1.714
  2. 3.100
  3. 3.250
  4. 3.500

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