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If sales increase from $100,000 per year to $150,000 per year, and the operating leverage is 4, then net income should increase by: A. 200% B. 150% C. 300% D. 250%

If sales increase from $100,000 per year to $150,000 per year, and the operating leverage is 4, then net income should increase by: A. 200% B. 150% C. 300% D. 250%

Entrepreneurial Finance
Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter4A: Nopat Breakeven: Revenues Needed To Cover Total Operating Costs
Section: Chapter Questions
Problem 1EP
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If sales increase from $100,000 per year to $150,000 per year, and the operating leverage is 4, then net income should increase by: A. 200% B. 150% C. 300% D. 250%
Transcribed Image Text:If sales increase from $100,000 per year to $150,000 per year, and the operating leverage is 4, then net income should increase by: A. 200% B. 150% C. 300% D. 250%
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