A company's operating profit increases by 7%, and its degree of operating leverage is 2.8. What is the percentage change in sales?

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
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A company's operating profit increases
by 7%, and its degree of operating
leverage is 2.8.
What is the percentage change in sales?
Transcribed Image Text:A company's operating profit increases by 7%, and its degree of operating leverage is 2.8. What is the percentage change in sales?
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