Bendel Inc. has an operating leverage of 5.4. If the company's sales increase by 12%, its...

Question

Question

Bendel Inc. has an operating leverage of 5.4. If the companys sales increase by 12%, its net operating income should increas

Answer 1

Answer #1

Increase in operating income

= increase in sales * operating leverage

= 12 * 5.4

= 64.80%

Option A is the answer

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Answer 2

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