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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

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 am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach

Andrea Schildbach

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.