Sperberg Corporation's operating leverage is 4.4. If the company's sales increase by 12%, its net operating income should increase by about: a. 12.0% b. 2.7% c. 39.2% d. 52.8%
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- which one is correct please confirm? QUESTION 7 A firm that has a 2.5 DOL (degree of operating leverage) would find that an 8% increase in EBIT would result from a ____ increase in sales. a. 3.2% b. 5.4% c. 20.0% d. 2.0%Degree of operating leverage of 1.5 means: a. If sales rise by 1%, EBIT will rise by 1.5% b. If sales rise by 1%, EBIT will remain unaffected c. If EBIT increase by 1%, the EPS will increase by 1 % d. If sales increase by 1.5%, the EBIT will increase by 1%Sales for Green Inc. are expected to change by 16%. If Green's degree of operating leverage is 2.20, how much is Green's operating income expected to change? A В D E 1 2 3 Green's operating income is expected to change by: 4 6 7 8 9 10
- NoneMendel Incorporated has an operating leverage of 3.8. If the company's sales increase by 10%, its net operating income should increase by about:If financial leverage of a firm is 4, Interest 6,00,000, Operating Leverage is 3, Variable cost to sales is 66.66%, Income tax rate is 30%, Number of Equity Shares 1, 00, 000. Calculate fixed cost and EPS of the firms. (For your reference, OL = Contribution/EBIT; FL = EBIT/EBT and CL = OL*FL)
- If sales increase from P80.000 per year to P140,000 per year, and if the operating leverage factor is 5, then net operating income should increase by:Sperberg corporation's operating leverageSheffield Corp.'s degree of operating leverage is 1.9. Warren Corporation's degree of operating leverage is 6. Warren's earnings would go up (or down) by as much as Sheffield's with an equal increase (or decrease) in sales. O 4.1 times O 3.2 times O 0.9 O 7.9 times
