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ACME,Inc.reported the Following Income Statement for 2009

Question 18

Multiple Choice

ACME,Inc.reported the following income statement for 2009:
ACME,Inc.reported the following income statement for 2009: If ACME's sales next year increase by 20%,ACME's EBIT will increase A) 20%, showing no operating leverage. B) 20%, showing no financial leverage. C) over 35%, due to operating leverage. D) over 35%, due to operating leverage and financial leverage.
If ACME's sales next year increase by 20%,ACME's EBIT will increase


A) 20%, showing no operating leverage.
B) 20%, showing no financial leverage.
C) over 35%, due to operating leverage.
D) over 35%, due to operating leverage and financial leverage.

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