A degree of operating leverage of 2.50 means that a 1 percent change in the quantity of units produced and sold will result in a 2.5 percent change in net income or earnings per share.

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The Answer of A degree of operating leverage of 2.50 means that a 1 percent change in the quantity of units produced and sold will result in a 2.5 percent change in net income or earnings per share.

A Degree of Operating Leverage of 2