(Answered) Using the ball corporation financial statements answer the

Economics

Using the Ball Corporation financial statements answer the following. Assume that, in the operating portion of the income statement, Cost of Sales is variable, and the other expenses are fixed.

a. What is the DOL for the company in 2015? Provide an interpretation for this, assuming that Sales are expected to increase by 8% next period.

b. What is the DFL for the company in 2015? Provide an interpretation for this assuming that EBIT is expected to increase by 10%.

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