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QUESTION
Operating Leverage = %Change in EBIT / %Change in Sales Here EBIT is the same as operating income and Sales is the same as Revenue PharmaCorp...
Operating Leverage = %Change in EBIT / %Change in Sales Here EBIT is the same as operating income and Sales is the same as Revenue PharmaCorp Operating Leverage = 0.25 / 0.27 = 0.9259 SynerCorp Operating Leverage = 0.32 / 0.25 = 1.28 BioMed Operating Leverage = 0.36 / 0.23 = 1.5652 SafeMed Operating Leverage = 0.40 / 0.21 = 1.9048 b. Can you explain the betas by operating leverage?
