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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Transcribed Image Text: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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