34 - The profit before interest and tax of an iron and steel company at the sales level of 40,000 TL is 15,000. When the sales of the business are 50,000, it is expected that the profit before interest and tax will be 25,000. What is the approximate degree of operating leverage of this business? a) 3.22 B) 2.00 NS) 3.00 D) 2.66 TO) 2.44
34 - The profit before interest and tax of an iron and steel company at the sales level of 40,000 TL is 15,000. When the sales of the business are 50,000, it is expected that the profit before interest and tax will be 25,000. What is the approximate degree of operating leverage of this business? a) 3.22 B) 2.00 NS) 3.00 D) 2.66 TO) 2.44
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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34 - |
The profit before interest and tax of an iron and steel company at the sales level of 40,000 TL is 15,000. When the sales of the business are 50,000, it is expected that the profit before interest and tax will be 25,000. What is the approximate degree of operating leverage of this business?
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The degree to which the firm is able to increase its operating income by increases its revenue is referred to as operating income
It helps to show the relationship between the fixed as well as variable costs.
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