Question
Problem no. 2 Treat each case independently. (EBIT Earnings before interest and taxes) A business has an operating leverage of 5.0. If it wants to
Problem no. 2 Treat each case independently. (EBIT Earnings before interest and taxes)
A business has an operating leverage of 5.0. If it wants to increase its EBIT by 200%, what would be the change in sales? If it wants to increase the profit by 400%, what would be the change in fixed cost? If it wants to increase the profit by 400%, what would be the change in unit sales price? If it wants to increase profit by 400%, what would be the change in unit variable cost? If it wants to increase the profit by 400% and fixed costs would increase by 10% and unit variable cost would increase by 20%,what would be the required change in volume?
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