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Cohen's Bowling Emporium has a degree of financial leverage of 2.0 and a degree of combined leverage of 6.0.

The breakeven sales level for Cohen's has been estimated to be $500,000. Fixed costs total $250,000. What effect will a 15 percent increase in sales have on EBIT?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92090473

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