Multiple Choice
If a firm has a degree of operating leverage (DOL) that is greater than 1.0, the we know that a 1.0 percent change in will cause in a change in that is 1.0 percent.
A) EBIT; sales; greater than
B) EBIT; net income; greater than
C) sales; EBIT; less than
D) sales; EBIT; greater than
E) EBIT; net income; less than
Correct Answer:
Verified
Correct Answer:
Verified
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