question archive XYZ wants to determine the Degree of Total Leverage at EBIT=$650,000
XYZ wants to determine the Degree of Total Leverage at EBIT=$650,000
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XYZ wants to determine the Degree of Total Leverage at EBIT=$650,000. As we did earlier, we will assume that:
¥ Fixed costs are $200,000
¥ Baskets are sold for $63.50 each
¥ Variable costs are $38.45 per basket
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