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Answer Posted / 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)
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