Siddhi sisodia Asked a Question
June 14, 2021 3:26 pmpts 30 pts
Oues): Which formula is 4sed to measure the degree of Operating leverage ? C (B) EBIT EBIT (A) Sales EBIT EBIT (C) (D) C EBT C Ans.: (B) EBIT
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  • Sakshi
    c/ebit
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  • Sakshi
    c/ebit
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  • Sanju thankyou
    Operating leverage occurs when a firm wants to meet its fixed expenses regardless of sales volume. One can say it is the tendency of operating profit to vary disproportionately wit...
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  • Rucha rajesh shingvekar
    Correct answer is option b ie= Contribution / EBIT
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