General Studies · Leverage Measures
Match List I with List II: List I (Leverage Measure)1. Degree of Operating Leverage2. Degree of Financial Leverage3. Degree of Combined Leverage4. Contribution Margin List II (Interpretation) a. Sensitivity of EPS to EBIT changes b. Sensitivity of EBIT to sales changes c. Sales minus variable cost d. Sensitivity of EPS to sales changes Select the correct match:
- 11-b, 2-a, 3-d, 4-c✓
- 21-d, 2-a, 3-b, 4-c
- 31-a, 2-b, 3-c, 4-d
- 41-b, 2-d, 3-a, 4-c
Correct answer
1-b, 2-a, 3-d, 4-c
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