Question

Troy Co.s sales increase by 15%. If Troy Co. has a degree of operating leverage (DOL) of 3.0, what is the expected change in

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Ans d. 45%

Degree of operating leverage = % change in EBIT / % change in sales

                                 3.0 = % change in EBIT / 15%

     % change in EBIT = 3.0 * 15%

% change in EBIT = 45%

Add a comment
Know the answer?
Add Answer to:
Troy Co.'s sales increase by 15%. If Troy Co. has a degree of operating leverage (DOL) of 3.0, what is the expected cha...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT