Question: AAA Auto supplies has calculated its operating leverage (DOL) is 2.50 and financial leverage (DFL) is 1.60. What is the impact of a 5% increase

 AAA Auto supplies has calculated its operating leverage (DOL) is 2.50

AAA Auto supplies has calculated its operating leverage (DOL) is 2.50 and financial leverage (DFL) is 1.60. What is the impact of a 5% increase in sales on AAA's net income? 12.5% 8% 596 20%

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