Hello teacher please provide answer accounting questions West Corporation's sales increased from $80,000 peryear to $84,000 per year while net operating incomeincreased from $15,000 to $18,750. What was thecompany's degree of operating leverage?a) 3.0b)5.0c) 2.5d)4.0

Step 1: Definition of Degree of Operating Leverage (DOL)The Degree of Operating Leverage (DOL)…

Answered: West Corporation's sales increased from…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

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ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter13: Capital Structure Concepts

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West Corporation's sales increased from $80,000 per year to $84,000 per year while net operating income increased from $15,000 to $18,750. What was the company's degree of operating leverage? a) 3.0 b)5.0 c) 2.5 d)4.0