An operating leverage of "5" means that: A company's sales will increase 5% with a...
60.1K
Verified Solution
Link Copied!
Question
Finance
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!