Coretel Systems, a provider of IT networking solutions, currently has sales of $65 million and variable operating costs of $47.25 million. Coretel expects to grow sales by 22% in the next year while keeping fixed operating costs constant at $13.5 million. What is the Degree of Operating Leverage (DOL) for Coretel? a. 4.18 b. 3.00 c. 5.41 d. 2.65

Coretel Systems, a provider of IT networking solutions, currently has sales of $65 million and variable operating costs of $47.25 million. Coretel expects to grow sales by 22% in the next year while keeping fixed operating costs constant at $13.5 million. What is the Degree of Operating Leverage (DOL) for Coretel? a. 4.18 b. 3.00 c. 5.41 d. 2.65

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter16: Financial Planning And Control

Section: Chapter Questions

Problem 18PROB

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