A degree of operating leverage of 5 times indicates that for every 1 percent change in EPS there will be a 1.5 percent change in sales for every 1 percent change in interest there will be a 5 percent change in EBIT for every 1 percent change in sales there will be a 15 percent change in EBIT for every 1 percent change in EBIT there will be a 1.5 percent change in ERS