If a company has a degree of operating leverage of 4.0, that means a 10% increase in sales will result in a 40% increase in operating income.

Name: If a company has a degree of operating leverage of 4.0, that means a 10% increase in sales will result in a 40% increase in operating income.
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Question

Quizplus · Accepted Answer

If a company has a degree of operating leverage of 2.0, that means a 20% increase in sales will result in a 40% increase in operating income.

If a Company Has a Degree of Operating Leverage of 4.0