The following data are available for X Company: • Ave Selling price of 16 per unit • Variable cost per unit of 11 • Units sold is 200,000 • Fixed cost is 800,000 • Interest expense is 50,000 What is the DFL (Degree of Financial Leverage)? • 2.50 times • 2.33 times • 5 times • 1.33 times

The following data are available for X Company: • Ave Selling price of 16 per unit • Variable cost per unit of 11 • Units sold is 200,000 • Fixed cost is 800,000 • Interest expense is 50,000 What is the DFL (Degree of Financial Leverage)? • 2.50 times • 2.33 times • 5 times • 1.33 times

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 23MC: If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month,...

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