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CH 12 Homework = Send to Gradebook Prey Next > Question 3 View Policies Current Attempt in Progress The Ivanhoe Co. is going
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Answer #1

Accounting DOL= 1 + [(FC+ D&A) / EBIT]

= 1 + [($104,000 + $73,000) / $87,000] = 1 + 2.034 = 3.03

So, a 10% additional increase in revenue should result in a (10% * 3.03) = 30.3% increase in EBIT.

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