Answered: National Co. forecasted the following…

National Co. forecasted the following for 2022: Unit sales 2,000 70% 15,000 45 175,000 5% Variable cost ratio Fixed cost Selling price per Unit Outstanding liability Interest Rate

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

Question

What is the Degree of Financial Leverage?

National Co. forecasted the following for 2022:
Unit sales
2,000
70%
15,000
45
175,000
5%
Variable cost ratio
Fixed cost
Selling price per Unit
Outstanding liability
Interest Rate

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