Compare the operating leverage for the entire 2007 2009

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Reference no: EM131328425

Gail and Company had the following sales and EBIT during the years 2007 through 2009.

	2007	2008	2009
Sales ($ million)	75.2	82.7	95.1
EBIT ($ million)	26.3	30.5	36.0

a. Use the data provided to assess Gail and Company's operating leverage over the following periods (1) 2007-2008 (2) 2008-2009 (3) 2007-2009

b. Compare, contrast, and discuss the firm's operating leverage between the 2007-2008 period and the 2008-2009 period. Explain any differences.

c. Compare the operating leverage for the entire 2007-2009 period to the values found for the 2007-2008 and 2008-2009 periods and explain the differences.

Reference no: EM131328425

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