The Fireworks Company sells packs of sparklers for $2.00 each. It costs $.50 per pack to manufacture and distribute the sparklers. The Fireworks Company has fixed operating costs of $8,000 and fixed financing costs of $2,000. What is the Fireworks Company's degree of financial leverage at 25,000 packs of sparklers produced and sold? What does this mean?

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The Answer of The Fireworks Company sells packs of sparklers for $2.00 each. It costs $.50 per pack to manufacture and distribute the sparklers. The Fireworks Company has fixed operating costs of $8,000 and fixed financing costs of $2,000. What is the Fireworks Company's degree of financial leverage at 25,000 packs of sparklers produced and sold? What does this mean?

The Fireworks Company Sells Packs of Sparklers for $2