The following information is available for a firm:
| evenue | ￡800,000 |
| Variable cost | 400,000 |
| Fixed cost | 200,000 |
| Operating income | 200,000 |
| Interest | 60,000 |
| Net income | 140,000 |
The firm's degree of total leverage (DTL) is closestto:
DTL = Revenue -Variable cost/Net income = ￡800,000 -￡400,000/￡140,000 = 2.86.