Firms in japan habitually employ high operating leverage

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Firms in Japan habitually employ high operating and financial leverage because of the use of modern technology and close borrower-lender relationships. Presume the Susaki Company has a sales volume of 100,000 units at a price of $25 per unit variable costs are $5 per unit as well as fixed costs are $1,500,000. Interest expense is $250,000. What is the unit of combined leverage for this Japanese firm?

Reference no: EM1399250

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Firms in japan habitually employ high operating leverage : Firms in Japan habitually employ high operating and financial leverage because of the use of modern technology and close borrower-lender relationships

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