Suppose Libra Sdn. Bhd. has a DOL of 9 at the 1000 units of sales. Which of the following could express the degree of operating leverage?

Select one:

a. If sales rise by 1%, EBIT will rise by 9%.

b. If sales rise by 9%, EBIT will fall by 1%.

c. If sales rise by 1%, EBIT will rise by 1%.

d. If sales rise by 9%, EBIT will rise by 9%.

Answer rating: 100% (QA)

Degree of operating leverage states that the changes in ... View the full answer