I need assistance with this financial accounting problem using valid financial procedures. If sales increase from $200,000 per year to$300,000 per year, and the operatingleverage is 5, then net income shouldincrease by:A) 200%B) 150%C) 300%D) 250%

Step 1: Detailed Explanation of Operating LeverageOperating leverage measures how changes in sales…

Answered: If sales increase from $200,000 per…

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter4A: Nopat Breakeven: Revenues Needed To Cover Total Operating Costs

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Problem 1EP

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If sales increase from $200,000 per year to $300,000 per year, and the operating leverage is 5, then net income should increase by: A) 200% B) 150% C) 300% D) 250%