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Madison Corporation's operating leverage is 4.8. If the company's sales increase by 15%, its net operating income should increase by about: a. 4.8% b. 15.0% c. 72.0% d. 31.2%

Madison Corporation's operating leverage is 4.8. If the company's sales increase by 15%, its net operating income should increase by about: a. 4.8% b. 15.0% c. 72.0% d. 31.2%

Principles of Accounting Volume 2
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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Madison Corporation's operating leverage is 4.8. If the company's sales increase by 15%, its net operating income should increase by about: a. 4.8% b. 15.0% c. 72.0% d. 31.2%
Transcribed Image Text:Madison Corporation's operating leverage is 4.8. If the company's sales increase by 15%, its net operating income should increase by about: a. 4.8% b. 15.0% c. 72.0% d. 31.2%
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