Multiple Choice
The Solemn Company has an operating leverage of 2. Sales for the current year are $100,000 with a contribution margin of $50,000. Sales are expected to be $150,000 in next year. Operating income for the current year can be expected to increase by what amount over the previous year?
A) $50,000
B) $25,000
C) 200%
D) 40%
Correct Answer:
Verified
Correct Answer:
Verified
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