Tribley Inc. has an operating leverage of 5.0. If the company's sales increase by 15%, its net operating income should increase by about: a. 3.0% b. 15.0% c. 75.0% d. 58.4%

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter16: Financial Planning And Control
Section: Chapter Questions
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Tribley Inc. has an operating leverage of 5.0. If the
company's sales increase by 15%, its net operating
income should increase by about:
a. 3.0%
b. 15.0%
c. 75.0%
d. 58.4%
Transcribed Image Text:Tribley Inc. has an operating leverage of 5.0. If the company's sales increase by 15%, its net operating income should increase by about: a. 3.0% b. 15.0% c. 75.0% d. 58.4%
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