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problem: The company has expected sales of $20 million fixed operating cost are 2.5 million and the variable cost of ratio is 65 percent. The company has outstanding a$12 million, 8 percent bank loan. The firm also has outstanding one million shares of common stock [$1 each VALUE] the tax rate is 40 percent. find out the degree of operating leverage at a sales level of $20 million? The current degree of financial leverage and forecast of sales dropped to $15 million?

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