Suppose a firm's profits increase 81 percent after sales change from $3.35 million to $4.3 million....
Suppose a firm's profits increase 81 percent after sales change from $3.35 million to $4.3 million. What is the firm's degree of operating leverage (DOL)? Round your answer to two decimal places.
Homework Answers
%change in sales =(4.3-3.35)/3.35 =0.2836
Degree of operating leverage =%change in profit/%change in sales
=.81/0.2836
=2.86
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Suppose a firm's profits increase 81 percent after sales change
from $3.35 million to $4.3 million....
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Suppose a firm's profits increase 83 percent after sales change from $3.45 million to $4.85 million. What is the firm's degree of operating leverage (DOL)? Round your answer to two decimal places. Number
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