. If Healthy Foods has an annual interest expense of $10,000, calculate the

Question

degree of financial leverage at both 20,000 and 25,000 bags.

20,000 bags x $10 = 200,000 - $10,000 = 190,000 – 80,000 = 110,000
25,000 bags x $10 = 250,000 - $10,000 = 240,000 – 80,000 = 160,000

e. What is the degree of combined leverage at both sales levels?

Answer 1

How is 80,000÷2,000 diffferent from the quotient 80,000÷200or80,000÷20