Calculate the degree of operating leverage

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Reference no: EM132009468

Between 2009 and 2010, the Smartbook Printing Company’s data showed that its volume of sales increased from $1,583,612 to 1,979,515; its operating income went from 712,950 to 995,877; and its earnings per share increased from 1.20 to 1.55. Calculate:

a. The Degree of Operating Leverage

b. The Degree of Financial Leverage

c. The Degree of Combined Leverage

Reference no: EM132009468

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