Cleckley Corporation's operating leverage is 5.9. If the company's sales increase by 19%, its net operating income should increase by about: a. 5.9% b. 31.1% c. 19.0% d. 112.1%
Cleckley Corporation's operating leverage is 5.9. If the company's sales increase by 19%, its net operating income should increase by about: a. 5.9% b. 31.1% c. 19.0% d. 112.1%
Chapter14: Capital Structure Management In Practice
Section: Chapter Questions
Problem 14P
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
Transcribed Image Text:Cleckley Corporation's operating leverage is 5.9. If the
company's sales increase by 19%, its net operating income
should increase by about:
a. 5.9%
b. 31.1%
c. 19.0%
d. 112.1%
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