At a sales level of $270,000, the magnitude of operating leverage for Donuts Unlimited is 1.5. If sales increase by 20%, profits (net income) will increase by: a. 20% b. 1.5% c. 15% d. 30%
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- Provide answer general accountingGeneral Accounting questionO e. operating income will decrease. XYZ Co. has a contribution margin of $450,000 and profit of $150,000. If sales increase 5%, by how much will profits increase? O a. 15% O b. 90% 30% O d. 60% O e. None of the given answer is correct. NEXT PAGE AGE Po
- Jacob Arrell Corporation has sales revenue of $9,500,000. The company's fixed costs total $5.000.000, its variable costs are 15 percent of sales, and its interest expense is $1,000,000. If the company wants to increase its EPS by 30%, how much will it need to increase its Sales? a. 20.24 percent b. 7.71 percent c. 11.42 percent d. 48.19 percent e. 16.75 percent FOTOperating Leverage PB&J Eatery has a monthly target operating income of $6,300. Variable expenses are 60% of sales and monthly fixed expenses are $15,120. What is PB&J Eatery’s operating leverage factor at the target level of operating income? Round answer to one decimal place.If sales increase from R80 000 per year to R120 000 per year, and if the operating leverage is 5, then net income should increase by: A. 167%. B. 100%. C. 334%. D. 250%.