It is December 31. Last year, Carter Chemical Co. had sales of $12,000,000, and it forecasts that next year's sales will be $11,160,000. Its fixed costs have been and are expected to continue to be $6,600,000, 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 EBITIS The degree of operating leverage (DOL) at 511,160,000 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, o firm's OOL 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 False True