Jefferson Inc.'s operating leverage is 5.2. If the company's sales increase by 10%, its net operating income should increase by about: a. 52.0% b. 12.0% c. 5.2% d. 17.3%

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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Jefferson Inc.'s operating leverage is 5.2. If the
company's sales increase by 10%, its net operating
income should increase by about:
a. 52.0%
b. 12.0%
c. 5.2%
d. 17.3%
Transcribed Image Text:Jefferson Inc.'s operating leverage is 5.2. If the company's sales increase by 10%, its net operating income should increase by about: a. 52.0% b. 12.0% c. 5.2% d. 17.3%
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