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)?
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)?
Chapter16: Financial Planning And Control
Section: Chapter Questions
Problem 18PROB
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What is JJ's degree of operating leverage??
Transcribed Image Text: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)?
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