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3. The data below relates to an industry. Year 2009 2010 2011 2012 2013 2014 2015 Rev 4,500,890 4,980,700 5,130,089 5,309,870 5,898,700 5,487,080 5,389,070 EBIT
3. The data below relates to an industry. Year 2009 2010 2011 2012 2013 2014 2015 Rev 4,500,890 4,980,700 5,130,089 5,309,870 5,898,700 5,487,080 5,389,070 EBIT 900,178 996,140 1,026,018 1,061,974 1,179,740 1,097,416 1,077,814 Net income 780,178 796,600 885,980 826,654 830,145 800,800 798,127 Required: a. Compute the degree of operating leverage. b. Calculate the degree of financial leverage. C. Interpret your results in (a) and (b)
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