An operating leverage of "5" means that: A company's sales will increase 5% with a...

60.1K

Verified Solution

Question

Finance

image
An operating leverage of "5" means that: A company's sales will increase 5% with a 1% increase in sales volume A company's profit will increase 5% with a 1% increase in EBIT O A company's EBIT will increase 10% with a 2% increase in sales volume A company's profit will increase 10% with a 2% increase in sales volume

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students