Question: What do these formulas mean? What does S stand for? DOL (degree of operating leverage) = (S VC)/(S VC FC) = % Change in Op

What do these formulas mean? What does S stand for?

DOL (degree of operating leverage) = (S VC)/(S VC FC) = % Change in Op Income for given % change in Sales

DFL (degree financial leverage) = (S VC FC)/(S VC FC I) = % change in NI from given % change in Op Income

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