The company's degree of operating leverage is closest to:
A)20.09
B)7.73
C)1.86
D)55.64

Name: The company's degree of operating leverage is closest to: A)20.09 B)7.73 C)1.86 D)55.64
Brand: Quizplus
Rating: 4.9 (33 reviews)

Question

Quizplus · Accepted Answer

The degree of operating leverage is calculated as the percentage change in EBIT divided by the percentage change in sales. In this case, the percentage change in EBIT is 20.09% and the percentage change in sales is 1%, so the degree of operating leverage is 20.09%.

The Company's Degree of Operating Leverage Is Closest To