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Omega Corporation has an operating leverage of 4.5. If the company's sales increase by 8%, by approximately how much should its net operating income increase? a) 8.0% b) 36.0% c) 45.0% d) 56.3%

Omega Corporation has an operating leverage of 4.5. If the company's sales increase by 8%, by approximately how much should its net operating income increase? a) 8.0% b) 36.0% c) 45.0% d) 56.3%

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 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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Omega Corporation has an operating leverage of 4.5. If the company's sales increase by 8%, by approximately how much should its net operating income increase? a) 8.0% b) 36.0% c) 45.0% d) 56.3%
Transcribed Image Text:Omega Corporation has an operating leverage of 4.5. If the company's sales increase by 8%, by approximately how much should its net operating income increase? a) 8.0% b) 36.0% c) 45.0% d) 56.3%
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