Which analysis involves a comparison of the cost of operating additional robotic tailors with additional revenues generated by increased product sales?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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Which analysis involves a comparison of the cost of operating additional robotic tailors with additional revenues generated by increased product sales?

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Degree of operating Leverage (DOL)

DOL is the measure of operating risk of the business and shows the effect of use of fixed operating cost on the operating profit. It shows the change in Net Income per unit change in sales.

It can be calculated as follows:

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