Calculate the degree of operating leverage (DOL), degree of financial leverage (DFL), degree of combined leverage (DCL), for the following firms:
|
Firm A
|
Firm B
|
Firm C
|
|
Output(units)
|
90000
|
35000
|
200000
|
|
Fixed Costs (USD)
|
10000
|
16000
|
2000
|
|
Variable cost per unit
|
0.2
|
1.5
|
0.02
|
|
Interest on borrowed funds
|
4000
|
8000
|
-
|
|
Selling price per unit
|
0.6
|
5
|
0.1
|