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West Corporation's sales increased from $80,000 per year to $84,000 per year while net operating income increased from $15,000 to $18,750. What was the company's degree of operating leverage? a) 3.0 b)5.0 c) 2.5 d)4.0

West Corporation's sales increased from $80,000 per year to $84,000 per year while net operating income increased from $15,000 to $18,750. What was the company's degree of operating leverage? a) 3.0 b)5.0 c) 2.5 d)4.0

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter13: Capital Structure Concepts
Section: Chapter Questions
Problem 6P
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West Corporation's sales increased from $80,000 per year to $84,000 per year while net operating income increased from $15,000 to $18,750. What was the company's degree of operating leverage? a) 3.0 b)5.0 c) 2.5 d)4.0
Transcribed Image Text:West Corporation's sales increased from $80,000 per year to $84,000 per year while net operating income increased from $15,000 to $18,750. What was the company's degree of operating leverage? a) 3.0 b)5.0 c) 2.5 d)4.0
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