Question

Bendel Inc. has an operating leverage of 7.3. If the company's sales increase by 3%, its...

Bendel Inc. has an operating leverage of 7.3. If the company's sales increase by 3%, its net operating income should increase by about:

7.3%

243.3%

21.9%

3.0%

0 0
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Answer #1

Increase in operating income

= Operating leverage * Increase in sales

= 7.3 * 3

= 21.9%

Option C is the answer

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