Question
7. Assume a firm has net sales of $3,000 and fixed costs of $810. Its variable costs are 55% of net sales. What is the
7. Assume a firm has net sales of $3,000 and fixed costs of $810. Its variable costs are 55% of net sales. What is the degree of operating leverage for this firm? Also, how much would EBIT of this firm change if net sales increase by 15%? Show your calculations.
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Money Banking And Financial Markets
Authors: Stephen Cecchetti, Kermit Schoenholtz
6th Edition
1260226786, 9781260226782
