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Answer: Operating leverage
**Explanation:** - **Option A (Total leverage)** is incorrect because total leverage measures the sensitivity of net income to changes in revenues, capturing both operating and financial leverage. - **Option B (Financial leverage)** is incorrect because financial leverage reflects the variability of profits introduced by interest charges, i.e., the sensitivity of net profit to changes in operating profit. - **Option C (Operating leverage)** is correct because it directly measures the sensitivity of operating profit (EBIT) to changes in revenues, which aligns with the question's requirement.
Author: LeetQuiz Editorial Team
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