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
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
Similar Questions
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
3.Calculate the value of Degree in Operating Leverage (DOL)*2 points0.18 times1.18 times2.18 times2.88 times
The value of EBIT at which EPS is equal to zero is known as Break even point Operating break even point Overall break even point Financial break even point
Calculate the Degree of Financial Leverage for the following firm.*1 point2.312.512.452.67
Calculate the Degree of Operational Leverage for the following firm.*2 points4.005.004.785.78