If sales increase 25 ebit increases 50 debt increases 75


If sales increase 25%, EBIT increases 50%, debt increases 75%, and working capital increases 12.5%, what is the degree of operating leverage?

A) 2
B) 5
C) 3
D) 6
E) 4

 

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Finance Basics: If sales increase 25 ebit increases 50 debt increases 75
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