Please help me solve the accounting question If sales increase from $80,000 per year to $120,000 peryear, and if the operating leverage is 5, then net incomeshould increase by:A. 167%.B. 100%.C. 334%.D. 250%.

Step 1: Define Operating LeverageOperating leverage mainly refers to the degree to which a company's…

Answered: If sales increase from $80,000 per year…

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter7: Corporate Valuation And Stock Valuation

Section: Chapter Questions

Problem 1P: Ogier Incorporated currently has $800 million in sales, which are projected to grow by 10% in Year 1...

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If sales increase from R80 000 per year to R120 000 per year, and if the operating leverage is 5, then net income should increase by: A. 167%. B. 100%. C. 334%. D. 250%.
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If sales increase from $80,000 per year to $120,000 per year, and if the operating leverage is 5, then net income should increase by: A. 167%. B. 100%. C. 334%. D. 250%.