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3. A firm has a change in sales from 1,500,000 to 1,600,000 units. The resulting change in earnings before interest and tax (EBIT) is $100,000
3. A firm has a change in sales from 1,500,000 to 1,600,000 units. The resulting change in earnings before interest and tax (EBIT) is $100,000 (from $400,000 to $500,000). The firms degree of operating leverage (DOL) is: A. 0.50 B. 1.05 C. 2.50 D. 3.75
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