A company has a degree of combined leverage of 1.25. price, Ask an Expert

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A firm has a degree of combined leverage of 1.25. Price per unit is $15 and variable cost per unit is $5. Interest expense is $10,000 and fixed costs are $190,000. Calculate the quantity of output produced.

a. 100,000 units
b. 120,500 units
c. 150,000 units
d. 200,000 units

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