A degree of operating leverage (DOL) equal to 1.5 times indicates that for every 1 percent change in _____.
A. earnings per share (EPS) there will be a 1.5 percent change in sales
B. interest there will be a 1.5 percent change in earnings before interest and taxes (EBIT)
C. sales there will be a 1.5 percent change in earnings before interest and taxes (EBIT)
D. earnings before interest and taxes (EBIT) there will be a 1.5 percent change in earnings per share (EPS)
E. sales there will be a 1.5 percent change in earnings per share (EPS)
Answer: C
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