None Bright Tech Manufacturing has a degree of operating leverage (DOL) of 3.6 at itscurrent sales level. The company is expecting a 7% increase in sales next quarter.By what percentage will Bright Tech's operating income change as a result of theincrease in sales?

To calculate the percentage change in operating income based on the Degree of Operating Leverage…

Answered: Bright Tech Manufacturing has a degree…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 21MC: Macom Manufacturing has total contribution margin of $61,250 and net income of $24,500 for the month...

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Bright Tech Manufacturing has a degree of operating leverage (DOL) of 3.6 at its current sales level. The company is expecting a 7% increase in sales next quarter. By what percentage will Bright Tech's operating income change as a result of the increase in sales?