What is JJ's degree of operating leverage Accounting-Operating leverageThe CFO of Jasper Jets (JJ) expects this year's sales to be $3.2million. EBIT is expected to be $1.4 million. The CFO knowsthat if sales actually turn out to be $2.9 million, JJ's EBIT willbe $1.2 million.What is JJ's degree of operating leverage (DOL)?

Concept of Operating LeverageOperating leverage refers to a company's ability to use fixed costs to…

Answered: Accounting-Operating leverage The CFO…

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Chapter16: Financial Planning And Control

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The CFO of Jupiter Jibs (JJ) expects this year’s sales to be $2.5 million. EBIT is expected to be $1 million. The CFO knows that if sales actually turn out to be $2.3 million, JJ’s EBIT will be $880,000. What is JJ’s degree of operating leverage (DOL)?
The CFO of Jupiter Jibs (JJ) expects this year s sales to be $2.5 million. EBIT is expected to be $1 million. The CFO knows that if sales actually turn out to be $2.3 million, JJ s EBIT will be $880,000. What is JJ s degree of operating leverage DO)?
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· What does a degree of financial leverage (DFL) of 2.0 indicate? O For every 1 percent change in its EBIT, the firm's EPS will change by 2 percent. O For every 1 percent change in its EBIT, the firm's sales will change by 2 percent. For every 1 percent change in its sales, the firm's EBIT will change by 2 percent. For every 1 percent change in its EPS, the firm's EBIT will change by 0.5 percent. ○ For every 1 percent change in its EPS, the firm's sales will change by 0.5 percent.
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Accounting-Operating leverage The CFO of Jasper Jets (JJ) expects this year's sales to be $3.2 million. EBIT is expected to be $1.4 million. The CFO knows that if sales actually turn out to be $2.9 million, JJ's EBIT will be $1.2 million. What is JJ's degree of operating leverage (DOL)?