Tribley Inc. has an operating leverage of 5.5. If the company's sales increase by 13%, its net operating income should increase by about: 56.9% 2.4% 13.0% 71.5%
Answer: 71.5%
Operating Leverage = % Changes In Operating Income / % Changes In Sales
5.5 = % Changes in Operating Income /13 %
5.5*13% = % Changes in Operating Income
71.5 % = % changes in Operating Income
Tribley Inc. has an operating leverage of 5.5. If the company's sales increase by 13%, its...
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