CFA CFA Level 1 Question about Measures of Leverage – Degree of Operating Leverage

Question about Measures of Leverage – Degree of Operating Leverage

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    • Avatar of vaibhavgupta177vaibhavgupta177
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        • CFA Level 2
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        DOL =(% Change in EBIT)/(% Change in Sales)=((change in EBIT)/(Initial EBIT))/((Change in Sales)/(Initial Sales))= (((P-V)*(Q^*-Q))/((P-V)*Q-FC))/((P*(Q^*-Q))/(P*Q))= (Q*(P-V))/((P-V)*Q-FC)

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