Data Recovery Systems (DRS) has a degree of operating leverage (DOL) equal to 3.2 and a degree
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Data Recovery Systems (DRS) has a degree of operating leverage (DOL) equal to 3.2× and a degree of total leverage (DTL) equal to 8×. DRS forecasts that this year’s sales will be $300,000 and that EBIT will be $180,000. If sales actually turn out to be $313,500, what will DRS’s EBIT be?
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If they turn out to be 940500 sales will be 45 ...View the full answer
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