Degree of operating leverage grant grocers has annual sales, Financial Management

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Degree of operating leverage grant grocers has annual sales

DEGREE OF OPERATING LEVERAGE Grant Grocers has annual sales of $1,000,000. The company’s fixed costs total $250,000, and its variable costs are 60% of sales. What is the company’s degree of operating leverage? If sales increased 20%, what would be the percentage increase in EBIT?

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Financial Management: Degree of operating leverage grant grocers has annual sales

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