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You have come up with the following income statement for your company and want to answer the following question. Sales $45,750 Variable Costs 22,800 Fixed
You have come up with the following income statement for your company and want to answer the following question.
Sales $45,750
Variable Costs 22,800
Fixed Costs 9,200
EBIT 13,750
Interest 1,350
EBT 12,400
Taxes 4,200
EAT 8,200
What is the degree of operating leverage (DOL)?
1.16 | ||
1.49 | ||
1.67 | ||
1.82 |
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