Wilson Company had originally expected to earn operating income of $175,000 in the coming year. Wilson's degree of operating leverage is 3.5. Recently, Wilson revised its plans and now expects to increase sales by 15% next year. What is the percent change in operating income expected by Wilson in the coming year?
Wilson Company had originally expected to earn operating income of $175,000 in the coming year. Wilson's degree of operating leverage is 3.5. Recently, Wilson revised its plans and now expects to increase sales by 15% next year. What is the percent change in operating income expected by Wilson in the coming year?
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter22: Master Budget (master)
Section: Chapter Questions
Problem 5R: Suppose the company has just the opposite news and now expects unit sales for August, September, and...
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
Transcribed Image Text:Wilson Company had originally expected to earn operating income
of $175,000 in the coming year. Wilson's degree of operating
leverage is 3.5. Recently, Wilson revised its plans and now expects
to increase sales by 15% next year. What is the percent change in
operating income expected by Wilson in the coming year?
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