Gail and Company had the following sales and EBIT during the years 2007 through 2009.
|
|
2007
|
2008
|
2009
|
|
Sales ($ million)
|
75.2
|
82.7
|
95.1
|
|
EBIT ($ million)
|
26.3
|
30.5
|
36.0
|
a. Use the data provided to assess Gail and Company's operating leverage over the following periods (1) 2007-2008 (2) 2008-2009 (3) 2007-2009
b. Compare, contrast, and discuss the firm's operating leverage between the 2007-2008 period and the 2008-2009 period. Explain any differences.
c. Compare the operating leverage for the entire 2007-2009 period to the values found for the 2007-2008 and 2008-2009 periods and explain the differences.