It is December 31. Last year, Praxis Corporation had sales of $16,000,000, and it forecasts that next year's sales will be $17,120,000. Its fixed costs have been and are expected to continue to be 1,200,000, and its variable cost ratio is 40.00%. Praxis's capital structure consists of a $13.5 million bank loan, on which it pays an interest rate of 6.00%, and 300,000 shares of common equity. The company's profits are taxed at a marginal rate of 35.00%. Given this data, complete the following sentences: - The percentage change in the company's sales is - The percentage change in EBIT is - The degree of operating leverage (DOL) at $16,000,000 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. True False