If the degree of accounting leverage is 1.3 for a firm, then a 10 percent increase in revenue should drive a

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The degree of accounting leverage (DAL) is a measure of a firm's operating leverage, which indicates the percentage change in EBIT (earnings before interest and taxes) resulting from a 1% change in sales revenue. DAL is calculated as follows:

DAL = % change in EBIT / % change in sales revenue

If DAL = 1.3, then a 10% increase in sales revenue should result in a 13% increase in EBIT:

DAL = 0.13 / 0.1 = 1.3

If the Degree of Accounting Leverage Is 1