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Assume company EBIT is $50,000; sales $300,000; degree of operating leverage is 1.4 times and degree of combined leverage is 2.0 times. Required: If sales

Assume company EBIT is $50,000; sales $300,000; degree of operating leverage is 1.4 times and degree of combined leverage is 2.0 times.

Required:

If sales increase by 10%, by how much would the EBIT increase?

Give your answer in percentage and in dollars.

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