1.Following information calculate degree of operating  Leverage  , % change in sales -27%, % change in EBIT -25%, % Change in EPS - 30 %*2 points0.931.230.123

Question

1.Following information calculate degree of operating  Leverage  , % change in sales -27%, % change in EBIT -25%, % Change in EPS - 30 %*2 points0.931.230.123
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Solution 1

The Degree of Operating Leverage can be calculated using the formula:

Degree of Operating Leverage = % Change in EBIT / % Change in Sales

Given the information:

% Change in Sales = -27% % Change in EBIT = -25%

We can substitute these values into the formula:

Degree of Operating Leverage = -25% Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob

Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solv

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1.Following information calculate degree of operating  Leverage  , % change in sales -27%, % change in EBIT -25%, % Change in EPS - 30 %*2 points0.931.230.123

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