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Question 6 (1 point) Sally was informed by the accounting team that her latest expansion project has a Degree of Operating leverage of 4x. She

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Question 6 (1 point) Sally was informed by the accounting team that her latest expansion project has a Degree of Operating leverage of 4x. She is excited by the news and explain this to her staff as: 1) a 5% increase in sales will result in 20% increase in profits. 2) a 1% increase in EBIT will result in a 4% increase in profits. 3) a 2% increase in net income is the result of a 8% increase in sales. 4) None of the above

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