Question

On the basis of your findings in part ​(c​), comment on the sensitivity of changes in EBIT in response to changes in sales. ​(Select the best answer​ below.) A. EBIT and sales are equally sensitive to changing sales​ levels; they​ increase/decrease the same as sales. B. EBIT is more sensitive to changing sales​ levels; it​ increases/decreases about twice as much as sales. C. Changes in sales have no effect on EBIT as long as the costs are the same. D. EBIT is less sensitive to changing sales​ levels; it​ increases/decreases half as much as sales.

Answer 1

option b. EBIT is more sensitive to changing sales​ levels; it​ increases/decreases about twice as much as sales.

A Change in Sales the will lead to a great change in EBIT

that is for a percent change in sales, will lead to a greater change in EBIT

Step-by-step explanation: