If Sales Increase 25%,EBIT Increases 50%,debt Increases 75%,and Working Capital

question 98

Multiple Choice

If sales increase 25%,EBIT increases 50%,debt increases 75%,and working capital increases 12.5%,what is the degree of operating leverage?

• A) 2
• B) 5
• C) 3
• D) 6
• E) 4

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