Total leverage measures the effect of fixed costs on the relationship between
A) Sales and EBIT.
B) Sales and EPS.
C) EBIT and EPS.
D) none of the above.

Name: Total leverage measures the effect of fixed costs on the relationship between A) Sales and EBIT. B) Sales and EPS. C) EBIT and EPS. D) none of the above.
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Question

Quizplus · Accepted Answer

Total leverage measures the impact of fixed costs on the relationship between sales and earnings per share (EPS), as it combines both operating and financial leverage.

Total Leverage Measures the Effect of Fixed Costs on the Relationship