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Clermont Industries' operating leverage is 4.7. If the company's sales increase by 15%, its net operating income should increase by about: a. 4.7% b. 15.0% c. 70.5% d. 35.3%

Clermont Industries' operating leverage is 4.7. If the company's sales increase by 15%, its net operating income should increase by about: a. 4.7% b. 15.0% c. 70.5% d. 35.3%

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 4BE: Profit margin, investment turnover, and ROI Briggs Company has operating income of 36,000, invested...
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Clermont Industries' operating leverage is 4.7. If the company's sales increase by 15%, its net operating income should increase by about: a. 4.7% b. 15.0% c. 70.5% d. 35.3%
Transcribed Image Text:Clermont Industries' operating leverage is 4.7. If the company's sales increase by 15%, its net operating income should increase by about: a. 4.7% b. 15.0% c. 70.5% d. 35.3%
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