A degree of operating leverage of 3 at 5,000 units means that a
a. 3% change in earnings before interest and taxes will cause a 3% change in sales.
b. 3% change in sales will cause a 3% change in earnings before interest and taxes.
c. 1% change in sales will cause a 3% change in earnings before interest and taxes.
d. 1% change in earnings before interest and taxes will cause a 3% change in sales.
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Morgan Del Rio
Marketing and Social Media Manager
IMA
morgan.delrio@...------------------------------