Sales in North Corporation increased from $63,000 per year to $65,520 per year while net operating income increased from $13,000 to $15,600. Given this data, the company's degree of operating leverage must have been: a) 5.0 b) 1.6 c) 4.0 d) 26.0

Sales in North Corporation increased from $63,000 per year to $65,520 per year while net operating income increased from $13,000 to $15,600. Given this data, the company's degree of operating leverage must have been: a) 5.0 b) 1.6 c) 4.0 d) 26.0

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter10: Forecasting Financial Statement

Section: Chapter Questions

Problem 3QE

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Hello tutor please provide this question solution general accounting

Sales in North Corporation increased from $63,000 per year to
$65,520 per year while net operating income increased from
$13,000 to $15,600. Given this data, the company's degree of
operating leverage must have been:
a) 5.0
b) 1.6
c) 4.0
d) 26.0

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