The CFO of Nova Boards (NB) expects this year's sales to be $3.0 million, and EBIT is projected to be $1.2 million. However, the CFO estimates that if sales actually turn out to be $2.7 million, NB's EBIT will be $960,000. What is NB's Degree of Operating Leverage (DOL)?
The CFO of Nova Boards (NB) expects this year's sales to be $3.0 million, and EBIT is projected to be $1.2 million. However, the CFO estimates that if sales actually turn out to be $2.7 million, NB's EBIT will be $960,000. What is NB's Degree of Operating Leverage (DOL)?
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter7: Corporate Valuation And Stock Valuation
Section: Chapter Questions
Problem 1P: Ogier Incorporated currently has $800 million in sales, which are projected to grow by 10% in Year 1...
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Kindly help me with this general accounting questions not use chart gpt please fast given solution
Transcribed Image Text:The CFO of Nova Boards (NB) expects this year's sales to be $3.0 million, and EBIT is projected
to be $1.2 million. However, the CFO estimates that if sales actually turn out to be $2.7 million,
NB's EBIT will be $960,000.
What is NB's Degree of Operating Leverage (DOL)?
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