Pike Corporation is evaluating the method used to manufacture its product, which sells for $25 per unit. The products variable cost is $21 per unit, and fixed operating costs are $180,000.00 To support operations, the firm requires $500,000 in debt which has a cost (rd) if 10 percent. The tax rate is irrelevant. The sales forecast for the coming year is 70,000 units. Compute Pikes (a) DOL (b) DFL (c) DTL Explain results.
Pike Corporation
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