Which of the following scenarios demonstrates the leverage effect on net operating income due to the existence of fixed costs?
A) A 25% increase in sales resulting in a 30% decrease in net operating income.
B) A 15% increase in sales resulting in a 15% increase in cost of goods sold.
C) A 25% increase in sales resulting in a 30% increase in net operating income.
D) A 25% increase in sales resulting in a 30% increase in fixed costs.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Which of the following scenarios demonstrates the leverage effect on net operating income due to the existence of fixed costs? A) A 25% ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Based on the law of demand, when the price of a specific good decreases, what will happen to the quantity demanded?
Answers (1)
insurer has the right to recover payment made to the insured from the negligent party. These rights are called?
Answers (1)
The increase of Account Payable on the statement of cash flow shows
Answers (1)
At the end of the accounting period, Isaac Company had a balance of $4,000 in its common stock account, additional paid in capital of $4,000, retained earnings of $3,000, and $1,000 of treasury stock.
Answers (1)
13. The work day has just started and you receive reports that the inventory management server is not accessible on your company's network. You recall that the new network administration assistant was working on that server last night.
Answers (1)
New Questions in Business
Using the following information, what is the amount of net income? Purchases $ 33,189 Selling expenses $ 758 Merchandise inventory, September 1 7,436 Merchandise inventory, September 30 8,978 Administrative expenses 760 Sales 51,684 Rent revenue 832
Answers (1)
You are managing a project and need to cut the cost of the project. You decide to transfer workers to another job to cut the project's costs. Costs associated with transferring the workers are an example of project indirect costs. O True O False
Answers (1)
K Inc. has provided the following data for the month of May: Inventories: Beginning Ending Work in process $ 17,000 $ 12,000 Finished goods $ 46,000 $ 50,000 Additional information: Direct materials $ 57,000 Direct labor cost $ 87,000 Manufacturing
Answers (1)
Marcy Tucker received the following items this year. Determine to what extent each item is included in her AGI. (Leave no cells blank - be sure to enter "0" wherever required.) A $25,000 cash gift from her parents.
Answers (1)
Analysis of daily output of a factory during a 8-hour shift shows that the hourly number of units y produced after t hours of production is
Answers (1)