The degree of combined leverage shows us to what degree a percentage change in sales will cause a percentage change in:
A)earnings before interest and taxes
B)pre-tax earnings after tax
C)earnings per share
D)gross profit

Question

Quizplus · Accepted Answer

The degree of combined leverage measures the sensitivity of earnings per share (EPS) to changes in sales, combining both operating and financial leverage effects.

The Degree of Combined Leverage Shows Us to What Degree