Which of the Following Mathematical Equations Is Used to Calculate

question 39

Multiple Choice

Which of the following mathematical equations is used to calculate the degree of operating leverage (DOL) ? (Δ = change)

• A)DOL = % Δ in net operating income (NOI)/% Δ in sales
• B)DOL = % Δ in sales/% Δ in earnings before taxes (EBT)
• C)DOL = % Δ in earnings before interest and taxes (EBIT)/% Δ in earnings per share (EPS)
• D)DOL = % Δ in sales/% Δ in earnings per share (EPS)
• E)DOL = % Δ in earnings per share (EPS)/% Δ in earnings before taxes (EBT)

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Definitions:

Radical Republicans

A faction within the U.S. Republican Party after the Civil War focused on ensuring the rights of freed slaves and implementing harsh reconstruction policies on Southern states.

Reconstruction Policy

Refers to the strategies and laws implemented in the United States after the Civil War (1865-1877) aimed at rebuilding and reinstating the Southern states while transforming society and ensuring the rights of freed slaves.

Southern States

Geographic regions located in the southern part of a country, often characterized by unique cultural, economic, and historical traits.