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22 July, 16:28

Bendel Inc. has an operating leverage of 5.9. If the company's sales increase by 10%, its net operating income should increase by а bout: Multiple Choice 59.0% 1.7% 10.0% 47.4%

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  1. 22 July, 19:23
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    The operating Income should increase by about 59.0%.

    Explanation:

    Degree of Operating Leverage = % Change in EBIT / % Change in Sales

    5.9 = % Change in EBIT / 10%

    % Change in EBIT = 5.9 * 10% = 59.0%
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