What percentage change in sales occurs if profits increase by 3.5% when the firm's degree of operating leverage (DOL) is 4.0?

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 25E
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What percentage change in sales
occurs if profits increase by 3.5% when
the firm's degree of operating leverage
(DOL) is 4.0?
Transcribed Image Text:What percentage change in sales occurs if profits increase by 3.5% when the firm's degree of operating leverage (DOL) is 4.0?
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