None Tribley Inc. has an operating leverage of 5.0. If thecompany's sales increase by 15%, its net operatingincome should increase by about:a. 3.0%b. 15.0%c. 75.0%d. 58.4%

Step 1: Introduction to the Operational leverageA cost-accounting method called operational leverage…

Answered: Tribley Inc. has an operating leverage…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 25E

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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%