Q211
Degree of total leverage can be applied in measuring change in _________.
A.
EBIT to a percentage change in quantity
B.
EPS to a percentage change in EBIT
C.
EPS to a percentage change in quantity
AnswerD.
Quantity to a percentage change in EBIT
Answer: Option C
Solution
Answer: Option C
Solution:
Degree of total leverage can be applied in measuring change in EPS to a percentage change in quantity. Degree of total leverage is the ratio of percentage change in earnings per share to percentage change in sales revenue.