The operating leverage is measured with the help of the following formula:

\frac{E B I T}{T o t a l a s s e t s}

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\frac{M a r g i n a l c o n t r i b u t i o n}{E B I T}

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\frac{p e r c e n t c h a n g e i n e a r n i n g s b e f o r e i n t e r e s t a n d t a x e s}{p e r c e n t c h a n g e i n q u a n t i t y p r o d u c e d a n d s o l d}

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\frac{D e b t}{E q u i t y}

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Solution

The correct option is C $\frac{p e r c e n t c h a n g e i n e a r n i n g s b e f o r e i n t e r e s t a n d t a x e s}{p e r c e n t c h a n g e i n q u a n t i t y p r o d u c e d a n d s o l d}$

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