Calculate the Degree of Operational Leverage for the following firm.*2 points4.005.004.785.78
Question
Solution 1
I'm sorry, but your question seems to be incomplete. The Degree of Operational Leverage is calculated using the formula:
Degree of Operational Leverage = % Change in EBIT / % Change in Sales
EBIT stands for Earnings Before Interest and Taxes, and it represents the company's operating profit.
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