Answer / safayat

I dont know whether u r asking for DOL(Degree of operating
leverage) & DFL(Degree of financial leverage) or not.
However, DOL can be calculated by the following formula:
Percent change in operating income divided by Percent change
in unit volume.
DFL can be calculated by:
Percent change in EPS(Earning per share) divided by
EBIT(earning before Interest & Taxes)

I know that rate of stock turnover = cost of goods sold/ average of stock. average of stock = (opening stock + closing stock)/ 2 what happens if it is a new business with no opening stock? do u take closing stock/2 or simply just take closing stock as the average stock figure?

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Answered but misspelled pl correct DEBIT INCREASES IN AN (ANS.SSATE)

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