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Degree of combined leverage

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Reference no: EM131114180

Calculate the degree of operating leverage (DOL), degree of financial leverage (DFL), degree of combined leverage (DCL), for the following firms:

Firm A

Firm B

Firm C

Output(units)

90000

35000

200000

Fixed Costs (USD)

10000

16000

2000

Variable cost per unit

0.2

1.5

0.02

Interest on borrowed funds

4000

8000

-

Selling price per unit

0.6

5

0.1

Reference no: EM131114180

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