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1. A firm sells 60,000 units of their product. Each unit has a selling price of $55 and a variable cost of $25. The firm also has fixed costs of $800,000 and interest expense of $50,000.

What is the Degree of Combined Leverage for this firm?

2. A firm sells 60,000 units of their product. Each unit has a selling price of $55 and a variable cost of $25. The firm also has fixed costs of $800,000 and interest expense of $50,000.

What is the Contribution Margin per unit?

Financial Management, Finance

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