Rushenberg Corporation's operating leverage is 10.8. If the company's sales increase by 14%, its net operating income should increase by about: A) 151.2% B) 14.0% C) 77.1% D) 10.8%

Financial Management: Theory & Practice
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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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Rushenberg Corporation's operating leverage is 10.8. If the
company's sales increase by 14%, its net operating income
should increase by about:
A) 151.2%
B) 14.0%
C) 77.1%
D) 10.8%
Transcribed Image Text:Rushenberg Corporation's operating leverage is 10.8. If the company's sales increase by 14%, its net operating income should increase by about: A) 151.2% B) 14.0% C) 77.1% D) 10.8%
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