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If a Firm That Has a Degree of Operating Leverage

Question 6

Multiple Choice

If a firm that has a degree of operating leverage (DOL) greater than 1.0 experiences a 1.0 percent change in _____, its earnings before interest and taxes (EBIT) will change by _____1.0 percent. 


A) earnings per share; greater than
B) net income; greater than
C) net operating income; less than
D) sales; greater than
E) fixed costs; less than

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