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) DTLExplain results.
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