It is December 31. Last year, Carter Chemical Co. had sales of $8,000,000, and it forecasts that next year's sales will be $7,120,000. Its fixed costs have been and are expected to continue to be $4,400,000, and its variable cost ratio is 7.50%. Carter's capital structure consists of a $13.5 million bank loan, on which it pays an interest rate of 9%, and 250,000 shares of common equity. The company's profits are taxed at a marginal rate of 40%. Given this data, complete the following sentences: The percentage change in the company's sales is The percentage change in Carter's EBIT is The degree of operating leverage (DOL) at $7,120,000 is_ There are several ways to use and interpret a firm's DOL value. Consider the following statement and indicate whether it accurately reflects the meaning or an appropriate use of a firm's DOL value. Assume that at a given sales level, a firm's DOL is 2.5. This means that a 1% change in the firm's sales will result in a corresponding 2.5% change in the firm's EBIT. True or False: This statement accurately describes a firm's DOL. O True O False