If Sales Are Expected to Increase 25%,EBIT Is Expected to Increase

question 18

Multiple Choice

If sales are expected to increase 25%,EBIT is expected to increase 15%,and EPS is expected to increase 10%,what is the degree of operating leverage?

• A) 2.5
• B) 6.0
• C) 1.5
• D) 0.6
• E) 1.7

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Definitions:

Overtly Aggressive Behaviour

Visible, explicit acts of aggression or hostility toward others, without concealment or subtlety.

Co-workers

Individuals who work together in the same organization, often collaborating or interacting to fulfill job duties.

Job Satisfaction

The level of fulfillment or contentment employees feel towards their jobs.

Facets

Different aspects or sides of something, often referring to various features that together characterize a complete phenomenon or entity.