Degree of operating leverage measuring the sensitivity
Problem: Degree of operating leverage measures the sensitivity of operating income earnings before income and taxes (EBIT) to changes in unit sales. With this in mind, what would happen to the DOL if all costs are fixed? Variable?
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Degree of operating leverage measures the sensitivity of operating income earnings before income and taxes (EBIT) to changes in unit sales.
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After a bruising series of recalls in 2010, Toyota Motor Corp. has quietly implemented a number of new quality and safety-related reforms to its operations
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