Montclair Industries has an operating leverage of 7.5. If the company's sales increase by 12%, what will be the approximate increase in its net operating income? A) 7.5% B) 12.0% C) 90.0% D) 62.5%
Montclair Industries has an operating leverage of 7.5. If the company's sales increase by 12%, what will be the approximate increase in its net operating income? A) 7.5% B) 12.0% C) 90.0% D) 62.5%
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 22MC: If a firm has a contribution margin of $59,690 and a net income of $12,700 for the current month,...
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Transcribed Image Text:Montclair Industries has an operating leverage of 7.5.
If the company's sales increase by 12%, what will be
the approximate increase in its net operating income?
A) 7.5%
B) 12.0%
C) 90.0%
D) 62.5%
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