Foundation of Finance
Quick practice
Question 1 of 5
A manufacturing company generated total sales of Rupees 500,000. The total variable costs amounted to Rupees 300,000, leaving a Contribution of Rupees 200,000. If the total fixed operating costs are Rupees 150,000, resulting in an Operating Profit (EBIT) of Rupees 50,000, what is the exact Degree of Operating Leverage (DOL) for the firm?
A
4.0
B
6.6
C
1.5
D
2.0
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