4.Calculate the value of Degree in Operating Leverage for Company A and Company B (consider 1st RM as A , and 2nd RM as B )*2 pointsCompany A -2.67 times , Company B -2.00 timesCompany B -2.27 times, Comapny B -2.33 timesCompany A 2.77 times, Company B 2.00 timesCompany A 2.87 times,Company B 2.33 times
Question
4.Calculate the value of Degree in Operating Leverage for Company A and Company B (consider 1st RM as A , and 2nd RM as B )*2 pointsCompany A -2.67 times , Company B -2.00 timesCompany B -2.27 times, Comapny B -2.33 timesCompany A 2.77 times, Company B 2.00 timesCompany A 2.87 times,Company B 2.33 times
Solution
I'm sorry, but your question seems to be incomplete or unclear. Could you please provide more details or clarify what you're asking? The Degree of Operating Leverage is typically calculated using the formula:
Degree of Operating Leverage = % Change in EBIT / % Change in Sales
However, in your question, you've provided some leverage ratios for Companies A and B, but it's unclear what you're asking to be done with these ratios. Are you asking for an average to be calculated, or is there some other calculation you'd like to be performed? Please provide more details so I can assist you better.
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