Variable costs are 5 per unit and fixed costs are 1500000., Ask an Expert

Management Studies

Firms in Japan often employ high operating and financial leverage because of the use of modern technology and close borrower-lender relationships. Assume the Susaki Comapny has a sales volume of 100,000 units at a price of $25 per unit; variable costs are $5 per unit and fixed costs are $1,500,000. Interest expense is $250,000. What is the degree of combined leverage for this Japanese firm?

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Business Management, Management Studies

Category:- Business Management
Reference No.:- M985264

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