If pretax profits increase by 20% when the DOL is 3.2, what is the increase in sales? a. 6.25% b. 64% c. 10% d. 8.5%

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?. Accounting

If pretax profits increase by 20% when the DOL is 3.2, what is
the increase in sales?
a. 6.25%
b. 64%
c. 10%
d. 8.5%
Transcribed Image Text:If pretax profits increase by 20% when the DOL is 3.2, what is the increase in sales? a. 6.25% b. 64% c. 10% d. 8.5%
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