If a firm's DOL is 3.6 with a profit of $2,000,000 and depreciation of $500,000,what are its other fixed costs?
A) $5,250,000
B) $4,700,000
C) $5,520,000
D) $5,800,000

Name: If a firm's DOL is 3.6 with a profit of $2,000,000 and depreciation of $500,000,what are its other fixed costs? A) $5,250,000 B) $4,700,000 C) $5,520,000 D) $5,800,000
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Quizplus · Accepted Answer

DOL = 3.6 = 1 + (FC + $500,000) / $2,000,000; FC = $4,700,000

If a Firm's DOL Is 3