Here's a similar operating leverage question with the correct answer: If sales increase from $200,000 per year to $260,000 per year, and the operating leverage is 3, then net income should increase by: A. 30% B. 60% C. 90% D. 120%
Here's a similar operating leverage question with the correct answer: If sales increase from $200,000 per year to $260,000 per year, and the operating leverage is 3, then net income should increase by: A. 30% B. 60% C. 90% D. 120%
Chapter4A: Nopat Breakeven: Revenues Needed To Cover Total Operating Costs
Section: Chapter Questions
Problem 1EP
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Accounting problem with correct solution
Transcribed Image Text:Here's a similar operating leverage question with the correct
answer:
If sales increase from $200,000 per year to $260,000 per year,
and the operating leverage is 3, then net income should
increase by:
A. 30%
B. 60%
C. 90%
D. 120%
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