Alpine Industries' net income last year was $24,000 and its contribution margin was $160,000. Using the operating leverage concept, if the company's sales increase next year by 8%, net income can be expected to increase by: A. 8% B. 16% C. 32% D. 53%

Alpine Industries' net income last year was $24,000 and its contribution margin was $160,000. Using the operating leverage concept, if the company's sales increase next year by 8%, net income can be expected to increase by: A. 8% B. 16% C. 32% D. 53%

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 6EB: During the current year, Plainfield Manufacturing earned income of $845,000 from total sales of...

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Question

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Net income can be expected to increase?? General accounting

Alpine Industries' net income last year was $24,000 and its
contribution margin was $160,000. Using the operating
leverage concept, if the company's sales increase next year
by 8%, net income can be expected to increase by:
A. 8%
B. 16%
C. 32%
D. 53%

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