1. Using the most recent three years of available data, compute Chevron’s degree of operating leverage. You will have to use the formula, percentage change in pretax income divided by percentage change in revenues. You can calculate two DOLs.

Log onto the S&P Market Insight Web site, www.mhhe.com/edumarketinsight. Click on “Company,” which is the first box below the Market Insight title. Type Chevron’s ticker symbol “CVX” in the box and click on Go. Scroll down the left margin to the -------
second major category and click on “S&P stock reports” and then click on the first S&P stock report at the top of the list. Scroll down to the bottom of the page and you will find an abbreviated income statement.