Kizspy | Question: 16
(Choose 1 answer)
If the degree of accounting operating leverage is 1.2 for a firm, then a 15 percent increase in revenue should
drive a:
A. 12% increase in pretax operating cash flows.
B. 18% increase in EBIT.
C. 30% increase in EBIT.
D. 1.3% increase in pretax operating cash flows.
