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.
https://brainmass.com/economics/econometric-models/growth-in-profits-degree-of-operating-leverage-37248
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