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Question: A summarized income statement for Leveraged Inc. is presented below.

Sales $1,000,000
Cost of Sales 600,000
Gross Profit 400,000
Operating Expenses 250,000
Operating Income 150,000
Interest Expense 30,000
Earnings Before Tax 120,000
Income Tax 40,000
Net Income 80,000

The degree of financial leverage is?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9792336

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