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If a company's degree of total leverage is 3, which of the following statements is true? If its sales increases by 1%, its EBIT will

If a company's degree of total leverage is 3, which of the following statements is true?

If its sales increases by 1%, its EBIT will reduce by 3%;

If its sales increases by 1%, its EAT will reduce by 3%;

If its EBIT increases by 1%, its EAT will increase by 3%;

If its sales increase by 1%, its EBIT will increase by 3%;

If its sales increases by 1%, its EAT will increase by 3%.

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