Corporate Finance Q109
| Income Statement | $ millions |
| Revenues | 15.2 |
| Variable Operating Costs | 9.8 |
| Fixed Operating Costs | 3.5 |
| Operating Income | 1.9 |
| Interest | 1.0 |
| Taxable Income | 0.9 |
| Tax | 0.2 |
| Net Income | 0.7 |
- Option : B
- Explanation : DFL = (Operating income) / (Operating income – Interest expense) = [Q(P - V) - F] / [Q(P - V) - F - C] = $1.9 / $0.9 = 2.11.
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