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Sales in Northway Inc. increased from $45,000 per year to $48,600 per year while net operating income increased from $12,000 to $15,600. Given this data, the company's degree of operating leverage must have been: a) 2.56 b) 3.08 c) 3.75 d) 5.05 help me with this

Sales in Northway Inc. increased from $45,000 per year to $48,600 per year while net operating income increased from $12,000 to $15,600. Given this data, the company's degree of operating leverage must have been: a) 2.56 b) 3.08 c) 3.75 d) 5.05 help me with this

Financial Reporting, Financial Statement Analysis and Valuation
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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Sales in Northway Inc. increased from $45,000 per year to $48,600 per year while net operating income increased from $12,000 to $15,600. Given this data, the company's degree of operating leverage must have been: a) 2.56 b) 3.08 c) 3.75 d) 5.05 help me with this

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