Solved

A Firm with $600,000 Fixed Costs and $200,000 Depreciation Is

Question 80

Multiple Choice

A firm with $600,000 fixed costs and $200,000 depreciation is expected to produce $225,000 in profits.What is its DOL?

A) 3.56
B) 3.67
C) 4.56
D) 4.67 DOL = 1 +
= 1 +
= 1 + 3.56

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