A summarized income statement for Leveraged Inc.is presented below. The degree of financial leverage is:
A) $150,000/$30,000
B) $150,000/$120,000
C) $1,000,000/$400,000
D) $150,000/$80,000
E) $400,000/$120,000

Question

A summarized income statement for Leveraged Inc.is presented below.  The degree of financial leverage is:
A) $150,000/$30,000 
B) $150,000/$120,000 
C) $1,000,000/$400,000 
D) $150,000/$80,000 
E) $400,000/$120,000

Quizplus · Accepted Answer

The Answer of A summarized income statement for Leveraged Inc.is presented below.  The degree of financial leverage is:
A) $150,000/$30,000 
B) $150,000/$120,000 
C) $1,000,000/$400,000 
D) $150,000/$80,000 
E) $400,000/$120,000

A Summarized Income Statement for Leveraged Inc