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    Growth in Profits - Degree of Operating Leverage?

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    If the sales of both software and deyboad divisions increase at the same rate, which will have the fastest growth in profits?
    I believe the key is derived by using DOL, or the degree of operating leverage. I am not sure how to apply this methodology to the sample data attached below.

    © BrainMass Inc. brainmass.com October 9, 2019, 4:37 pm ad1c9bdddf
    https://brainmass.com/economics/econometric-models/growth-in-profits-degree-of-operating-leverage-37248

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