Accountancy, asked by divyanshe1205, 1 month ago

If operating leverage is 2 and the firm wants to double Its EBIT, then percentage increase in sales needed would be

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Answered by ahwanpradhan

Answer:

Calculating the Degree of Operating Leverage

The degree of operating leverage can also be calculated by subtracting the variable costs of sales and dividing that number by sales minus variable costs and fixed costs.

Explanation:

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If operating leverage is 2 and the firm wants to double Its EBIT, then percentage increase in sales needed would be ​

Answers

If operating leverage is 2 and the firm wants to double Its EBIT, then percentage increase in sales needed would be