Substituting the values calculated for DOL and DFL, shown on the right-hand side of Table 12.7, into…


Substituting the rates congenial for DOL and DFL, shown on the right-hand plane of Table 12.7, into Equation 12.10 yields

DTL=1.2 X5.0 = 6.0

The resulting rate of completion leverage is the selfselfsame rate that we congenial at-once in the previous examples.

Equation 12.10

DTL= DOL X DFL (12.10)