Das Corp had originally expected to earn operating income of $150,000 in the coming year. Das's degree of operating leverage is 3.1. Recently, Das revised its plans and now expects to increase sales by 15% next year. What is the percent change in operating income expected by Das in the coming year?
Das Corp had originally expected to earn operating income of $150,000 in the coming year. Das's degree of operating leverage is 3.1. Recently, Das revised its plans and now expects to increase sales by 15% next year. What is the percent change in operating income expected by Das in the coming year?
Chapter9: Capital Budgeting And Cash Flow Analysis
Section: Chapter Questions
Problem 20P
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Transcribed Image Text:Das Corp had originally expected to earn operating
income of $150,000 in the coming year. Das's degree
of operating leverage is 3.1. Recently, Das revised its
plans and now expects to increase sales by 15% next
year.
What is the percent change in operating income
expected by Das in the coming year?
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