General Studies · Leverages
The primary formula used to calculate the Degree of Operating Leverage (DOL) is:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Earnings Per Share (EPS) / Market Price Per Share (MPS)
- 2Debt / Equity
- 3Contribution / Earnings Before Interest and Tax (EBIT)✓
- 4Earnings Before Interest and Tax (EBIT) / Profit Before Tax (PBT)
Correct answer
Contribution / Earnings Before Interest and Tax (EBIT)
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