The Chen Corp. in 2016 had revenues of $1,200, variable costs of $600, fixed operating costs of $200, interest expenses of $100, no taxes, and net income = $300. The total leverage effect for this company is
A) 1
B) 1.33
C) 3
D) 4

Question

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The Answer of The Chen Corp. in 2016 had revenues of $1,200, variable costs of $600, fixed operating costs of $200, interest expenses of $100, no taxes, and net income = $300. The total leverage effect for this company is
A) 1
B) 1.33
C) 3
D) 4