A degree of operating leverage of 1.5 times indicates that _____.?
A. ?for every 1 percent change in EPS there will be a 1.5 percent change in sales
B. ?for every 1 percent change in interest there will be a 1.5 percent change in EBIT
C. ?for every 1 percent change in sales there will be a 1.5 percent change in EBIT
D. ?for every 1 percent change in EBIT there will be a 1.5 percent change in EPS
E. ?for every 1 percent change in sales there will be a 1.5 percent change in EPS
Answer: C
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