24. Controlling operations with operating leverage. Treat each case independently. (EBIT is earnings before interest and taxes) A business has an operating leverage of 5.0. If it wants to increase its...

#24 ANSWER ALL THE QUESTIONS AND SHOW YOUR SOLUTION

Extracted text: 24. Controlling operations with operating leverage. Treat each case independently. (EBIT is earnings before interest and taxes) A business has an operating leverage of 5.0. If it wants to increase its EBIT by 200%, what would be its change in sales? 1. 2. A business has projected to increase its sales by 10% and wants to increase its EBIT by 120%, what would be its degree of operating leverage? A business has an operating leverage of 7.0 and expects to increase its sales by 20%, what would be its percentage change in EBIT? 4. A business has an operating leverage of 4.5 and expects a decrease in sales of 15%, what would be the change EBIT? 3.