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Greenfield Enterprises' operating leverage is 3.5. If the company's sales increase by 12.5%, its net operating income should increase by about: a. 12.5% b. 3.5% c. 43.75% d. 37.50%

Greenfield Enterprises' operating leverage is 3.5. If the company's sales increase by 12.5%, its net operating income should increase by about: a. 12.5% b. 3.5% c. 43.75% d. 37.50%

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 23MC: If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month,...
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Greenfield Enterprises' operating leverage is 3.5. If the company's sales increase by 12.5%, its net operating income should increase by about: a. 12.5% b. 3.5% c. 43.75% d. 37.50%
Transcribed Image Text:Greenfield Enterprises' operating leverage is 3.5. If the company's sales increase by 12.5%, its net operating income should increase by about: a. 12.5% b. 3.5% c. 43.75% d. 37.50%
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