Blue Co. forecasted the following data for 2022 · Projected unit sales is 5,000 at a selling price of P65. · Variable cost ratio is 60% · Operating break-even point in sales is P250,000 · Earnings...

Blue Co. forecasted the following data for 2022


·      Projected unit sales is 5,000 at a selling price of P65.


·      Variable cost ratio is 60%


·      Operating break-even point in sales is P250,000


·      Earnings before taxes and interest is P30,000


·      The P100,000 total debt of the firm requires annual payment of interest at 5%.


What is the degree of combined leverage?