(Answered) Bubbys britles generated sales of 250000 in the latest year

Finance

Bubby's Britles generated sales of $250,000 in the latest year. During this same period, the firm's EBIT was $150,000. If the firm were to incur $25,000 in interest expense, what is Bubby's degree of financial leverage?

i) .83
ii) 1.2
iii) 3.7
iv) 5.3

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