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Basic Question 1 of 2

Consider a firm with sales of $500,000, cost of goods sold of $245,000, fixed operating costs of $50,000, and a financing expense of $60,000. The degree of total leverage for this firm is ______.

A. 1.10
B. 1.41
C. 1.76
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User Contributed Comments 3

User Comment
setmefree DTL = (S-VC)(S-VC-F-I)
2014 DTL = Q(p-v)/Q(p-v)-f-c
khalifa92 laugh at me
DTL= S-VC/S-VC-F * S-VC-F/S-VC-FC-C
it worked tho xD
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

Learning Outcome Statements

calculate the breakeven quantity of sales and determine the company's net income at various sales levels;

calculate and interpret the operating breakeven quantity of sales.

CFA® 2024 Level I Curriculum, Volume 4, Module 35.