If pretax profits increase by 15% when the DOL is 2.5, what is the increase in sales? a. 37.5% b. 6% c. 10% d. 3.75%

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter4A: Nopat Breakeven: Revenues Needed To Cover Total Operating Costs
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what is the increase in sales? general accounting question

If pretax profits increase by 15% when the DOL is 2.5, what is the
increase in sales?
a. 37.5%
b. 6%
c. 10%
d. 3.75%
Transcribed Image Text:If pretax profits increase by 15% when the DOL is 2.5, what is the increase in sales? a. 37.5% b. 6% c. 10% d. 3.75%
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