What is the lowest possible value for the degree of operating leverage for a profitable firm? Show
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What is the lowest possible value for the degree of operating leverage for a profitable firm? Show with a numerical example that if Modern Artifacts (see Problem 14) has zero fixed costs, then DOL = 1 and in fact sales and profits are directly proportional, so a 1% change in sales results in a 1% change in profits.
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Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
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